5/23/13: Gassing Up Returns

By Benjamin Shepherd • May 23, 2013

With its low production costs for natural gas that now roughly stand at breakeven, Cimarex could easily surpass expectations if natural gas prices conform to the forecast and remain above $4 per MMBtu for the foreseeable future. This company is a solid, conservative play on rising natural gas prices.
I’m adding Cimarex Energy to the Resources sleeve as a buy under 76.
With its low production costs for natural gas that now roughly stand at breakeven, Cimarex could easily surpass expectations if natural gas prices conform to the forecast and remain above $4 per MMBtu for the foreseeable future. This company is a solid, conservative play on rising natural gas prices.

I’m adding Cimarex Energy to the Resources sleeve as a buy under 76.

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This company is a solid, conservative play on rising natural gas prices. With a 7.3 percent return on assets and 16.8 percent return on equity–more than twice that of other water utilities–this company is a strong bet on continuing Brazilian infrastructure investment in the country’s largest metropolitan region.

I’m adding Companhia de Saneamento Basico do Estado de Sao Paulo to the Long-Term Holdings Portfolio as a buy under 19.

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