Best Oil Stocks To Own Right Now

As an investor, you've likely found out the hard way that not all companies operating in the same sector offer similar risks or rewards. Sometimes your idea can be right, but you make the wrong stock selection, which can wreck your returns. That's why it's as important to pick the right stock not only to benefit from a long-term trend but also to fit within your risk tolerance.�

One sector where there is a diversity of risk profiles is in the upstream oil and gas MLP space. While known for their high yields, it's important that you don't judge an upstream MLP by yield alone. That's easy to do because as you can see from the chart below, these yields can vary significantly:

Company

Yield

BreitBurn Energy Partners (NASDAQ: BBEP  )

10.50%

EV Energy Partners (NASDAQ: EVEP  )

Top 10 Medical Stocks To Own Right Now: Range Resources Corporation(RRC)

Range Resources Corporation, an independent natural gas company, engages in the acquisition, exploration, and development of natural gas properties primarily in the Appalachian and southwestern regions of the United States. The company?s Appalachian region drilling and producing activities include tight-gas, shale, coal bed methane, and conventional natural gas and oil production in Pennsylvania, Virginia, Ohio, and West Virginia. It owns 4,969 net producing wells, approximately 2,750 miles of gas gathering lines, and approximately 1.8 million gross acres under lease. The company?s Southwestern drilling and producing activities cover the Barnett Shale of North Texas, the Permian Basin of West Texas and eastern New Mexico, the East Texas Basin, the Texas Panhandle, and the Anadarko Basin of Western Oklahoma. It owns 1,954 net producing wells, as well as approximately 886,000 gross acres under lease. As of December 31, 2010, Range Resources Corporation had had 4.4 Tcfe of pr oved reserves. It sells gas to utilities, marketing companies, and industrial users. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1975 and is headquartered in Fort Worth, Texas.

Advisors' Opinion:

• [By Aaron Levitt]

  While the focus on dry gas has hindered many other natural gas stocks, SWN has benefited due to its drilling efficiencies and low cost structure. Southwestern’s finding and development costs have averaged below $1.50 per millions of cubic feet of natural gas equivalent over the last three years. Only a small handful of natural gas companies — including Range Resources (RRC) — have beaten SWN in that regard.

• [By Arjun Sreekumar]

  Even Range Resources (NYSE: RRC  ) , another low-cost Marcellus operator with outstanding returns, requires $4 gas prices to generate a 96% IRR on its dry gas wells and a 105% IRR on its super-rich gas wells, while EQT (NYSE: EQT  ) earns a 53% after-tax internal rate of return on its Marcellus wells with gas prices at $4.

• [By Victor Selva]

  Competitors such as Sandridge Energy Inc. (SD), Penn Virginia Corp. (PVA), Newfield Exploration Co. (NFX) also have a negative ROE. An alternative could be Cabot Oil &Gas Corp. (COG), Range Resources Corp. (RRC), SM Energy Co. (SM), Pioneer Natural Resources Co. (PXD) or Whiting Petroleum Corp (WLL), Berry Petroleum Co. (BRY), but for investors searching for a higher ratio, Continental Resources Inc. (CLR) will be the best option.

• [By Travis Hoium]

  What: Shares of Range Resources (NYSE: RRC  ) jumped as much as 12% today after reporting earnings.

  So what: Management said that second-quarter revenue jumped 50% to $673.4 million, and that it earned $0.34 per share. Expectations were for just $420 million in revenue and profit of $0.32 per share, so the results were far better than expected.

Best Oil Stocks To Own Right Now: Bonavista Energy Corp (BNPUF.PK)

Bonavista Energy Corporation (Bonavista) is engaged in the acquisition, exploration, development and production of oil and natural gas assets. The Company operates approximately 87% of its assets which are concentrated within three core regions in western Canada. Each core region contains a well-balanced portfolio of oil and natural gas assets with considerable opportunities. Its operations are geographically focused within three regions of Western Canada, which includes Western region, Northern region and Eastern region. The Company�� subsidiaries include Bonavista Petroleum (BP), Bonavista Energy LP (BELP) and Bonavista Energy Inc. (BEI). Advisors' Opinion:

• [By Stephan Dube]

  Cold Lake's most notable producers:

  Husky Energy (HUSK.PK), see article here.Pengrowth Energy Corporation (PGH), see article here.Southern Pacific Resource (STPJF.PK), see article here.Canadian Natural Resources (CNQ), see article here.Devon Energy (DVN), see article here.Imperial Oil (IMO), see article here.Baytex, see article here.Bonavista Energy (BNPUF.PK), see article here.

  Athabasca's most notable producers:

Best Oil Stocks To Own Right Now: Susser Petroleum Partners LP (SUSP)

Susser Petroleum Partners LP is primarily engaged in fee-based wholesale distribution of motor fuels to Susser Holdings Corporation (SHC) and third parties. SHC operates over 540 retail convenience stores under its Stripes convenience store brand. In addition to distributing motor fuel, the Company also distributes other petroleum products, such as propane and lube oil, and it receive rental income from real estate that it lease or sublease. In January 2014, Susser Petroleum Partners LP announced the acquisition of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores, Inc. and 3W Warren Fuels, Ltd.

During the year ended December 31, 2011, the Company distributed 789.6 million gallons of motor fuel to Stripes convenience stores and 522.8 million gallons of motor fuel to other customers. It also distributes Chevron, CITGO, Conoco, Exxon, Mobil, Phillips 66, Shamrock, Shell, Texaco and Valero branded motor fuel, as well as unbranded motor fuel. In addition to distributing motor fuel, it also distributes other petroleum products, such as propane and lube oil.

Advisors' Opinion:

• [By Robert Rapier]

  Susser Petroleum Partners (NYSE: SUSP) engages in fee-based wholesale distribution of motor fuels. The partnership also distributes petroleum products like propane and lube oil, and receives rental income from real estate.

• [By Robert Rapier]

  Susser Petroleum Partners (NYSE: SUSP) debuted in September 2012, and has appreciated by 50 percent since. Susser engages in fee-based wholesale distribution of motor fuels. The partnership also distributes petroleum products like propane and lube oil, and receives rental income from real estate.

Best Oil Stocks To Own Right Now: Eagle Rock Energy Partners LP (EROC)

Eagle Rock Energy Partners, L.P. (Eagle Rock) is a limited partnership engaged in the business of gathering, compressing, treating, processing and transporting natural gas; fractionating and transporting natural gas liquids (NGLs); crude oil logistics and marketing; natural gas marketing and trading, known as Midstream Business, and developing and producing interests in oil and natural gas properties, known as Upstream Business. On May 3, 2011, the Company acquired CC Energy II, L.L.C and outstanding membership interests of Crow Creek Energy. On May 20, 2011, it sold the Wildhorse Gathering System in its East Texas and Other Midstream Segment.

Midstream Business

The Company�� Midstream Business is located in four natural gas producing regions: the Texas Panhandle; East Texas/Louisiana; South Texas, and the Gulf of Mexico. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production to the Company of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed. As of December 31, 2011, its Midstream Business consisted of Panhandle Segment and East Texas and Other Midstream Segment.

The Company�� Texas Panhandle Segment covers 10 counties in Texas and two counties in Oklahoma. Through the systems within this segment, the Company offers midstream wellhead-to-market services, including gathering, compressing, treating, processing and selling of natural gas, and fractionating and selling of NGLs. As of December 31, 2011, approximately 213 producers and 2,072 wells and central delivery points were connected to the systems in its Texas Panhandle Segment. The Texas Panhandle Segment averaged gathered volumes fo! r 2011 of approximately 155.1 million cubic feet of natural gas per day. As of December 2011, Chesapeake Energy and BP America Production represented 14% and 11%, respectively, of the total volumes of its Texas Panhandle Segment. The Texas Panhandle Segment consists of approximately 3,963 miles of natural gas gathering pipelines, ranging from two inches to 24 inches in diameter; seven natural gas processing plants with an aggregate capacity of 210 million cubic feet of natural gas per day; a propane fractionation facility with capacity of 1.0 million cubic feet of natural gas per day, and two condensate collection and stabilization facilities.

Eagle Rock�� systems in the East Panhandle (northern Wheeler, Hemphill and Roberts Counties, Texas) gather and process natural gas produced in the Morrow and Granite Wash reservoirs of the Anadarko basin. In the Panhandle Segment, natural gas is contracted at the wellhead primarily under percent-of proceeds (which includes percent-of-liquids) fixed recovery, percent-of-index and fee-based arrangements that range from one to five years in term. During the year endede December 31, 2011, it produced over 2,600 equity barrels per day of condensate in the Texas Panhandle Segment. During 2011, it stabilizes approximately 2,000 barrels per day combined at its Superdrip and Cargray Stabilizers.

The Company�� East Texas and Other Midstream Segment operates within the natural gas producing regions, such as East Texas/Louisiana, South Texas and the Gulf of Mexico. Through its Texas/Louisiana region, it offers producers natural gas gathering, treating, processing and transportation and NGL transportation across 21 counties in East Texas and seven parishes in West Louisiana. Its operations in the South Texas region primarily gather natural gas and recover NGLs and condensate from natural gas produced in the Frio, Vicksburg, Miocene, Canyon Sands and Wilcox formations in South Texas. Its operations in the Gulf of Mexico region are non-operated owne! rship int! erests in pipelines and onshore plants which are all located in southern Louisiana. The Gulf of Mexico region also provides producer services by arranging for the processing of producers��natural gas into third-party processing plants, known as Mezzanine Processing Services.

As of December 31, 2011, approximately 705 wells and central delivery points were connected to its systems in the East Texas and Other Midstream Segment. As of December 31, 2011, the East Texas and Other Midstream Segment provides gathering and/or marketing services to approximately 140 producers. During 2011, the East Texas and Other Midstream Segment averaged gathered volumes of approximately 319.9 million cubic feet of natural gas per day. As of December 31, 2011, Stone Energy Corporation and Anadarko Petroleum Company represented 18% and 9%, respectively, of the total volumes of its East Texas and Other Midstream Segment. Residue gas pipelines include Houston Pipeline Company, Natural Gas Pipeline Company, Tennessee Gas Pipeline, Crosstex Energy L.P. and Southern Natural Pipeline.

Upstream Business

The Company�� Upstream Business located in four regions within the United States, such as Southern Alabama, which includes the associated gathering, processing and treating assets; Mid-Continent, which includes areas in Oklahoma, Arkansas, Texas Panhandle and North Texas; Permian, which includes areas in West Texas, and East/South Texas/Mississippi assets. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed.

The Southern Alabama region includes the! Big Esca! mbia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama. These fields produce from either the Smackover or Norphlet formations at depths ranging from approximately 15,000 to 16,000 feet. The Big Escambia Creek field encompasses approximately 11,568 gross and 7,334 net Eagle Rock operated acres. It operates 18 productive wells with an average ownership of 60% working interest and 51% net revenue interest in the Big Escambia Creek field. The Fanny Church field is located two miles east of Big Escambia Creek. Its ownership includes approximately 1,284 gross and 999 net operated acres that include three productive operated wells with an average ownership of 86% working interest and 66% net revenue interest. The Flomaton field is adjacent to and partially underlies the Big Escambia Creek field. The field encompasses approximately 1,280 gross and 1,256 net Eagle Rock operated acres and produces from the Norphlet formation at depths from approximately 15,000 to 16,000 feet. It operates three productive wells with an approximate average 91% working interest and 78% net revenue interest. The Smackover and Norphlet reservoirs are sour, gas condensate reservoirs which produce gas and fluids containing a high percentage of hydrogen sulfide and carbon dioxide.

The Mid-Continent region consists of operated and non-operated properties across the Golden Trend Field, Cana Shale play, Verden Field, and other western Oklahoma fields located in the Anadarko Basin in Oklahoma, the Mansfield Field and other various fields in the Arkoma Basin in Arkansas and Oklahoma, various fields in the Texas Panhandle, and the Barnett Shale in north Texas. Productive depths range from approximately 2,500 feet in the Arkoma fields of western Arkansas to greater than 18,000 feet in the Springer formation in certain western Oklahoma fields. Its producing field is the Golden Trend field that extends across Grady, McClain and Garvin counties in Oklahoma. It has 14,621 net acres in the Cana Shale play exte! nding acr! oss Canadian, Blaine and Dewey counties, Oklahoma. The Cana Shale produces from horizontal wells drilled to vertical depths of 11,000 - 13,000 feet and extended with horizontal lateral lengths of approximately 5,000 feet. In the total Mid-Continent region, it operate 316 productive wells and own a working interest in an additional 1,054 non-operated productive wells. The average working interest in these productive operated and non-operated wells is 83% and 9%, respectively. The net production averaged approximately 53.2 million cubic feet of natural gas per day during 2011, of which approximately 77% was produced from wells it operated.

The Permian region contains numerous fields, including Block 27, Estes Block 34, H.S.A., Heiner, Monahans N., Payton, Running W., Ward S, and Ward-Estes N. located mainly in Ward, Pecos, and Crane Counties, Texas. These fields are located in the Central Basin Platform which extends from central Lea County in New Mexico to central Pecos County in Texas and encompasses hundreds of individual fields with multiple productive intervals from the Yates-Seven Rivers-Queen through the Ellenburger formations. The Ward County fields contains two major properties, the Louis Richter and the American National Life Ins. Co. leases, and encompasses approximately 10,285 gross and 10,215 net Eagle Rock acres. It operate multiple fields consisting of stacked multi-pay horizons that produce from depths of 2,300 feet (Yates) to 9,100 feet (Pennsylvanian). The Southern Unit is located in the Running W Waddell field and produces predominantly oil at depths from approximately 5,750 to 5,900 feet. It operates approximately 5,875 net acres in this area.

The East/South Texas/Mississippi region includes the Aker, Birch, Edgewood, Eustace, Fruitvale, Ginger and Wesson fields in East Texas, the Jourdanton field in South Texas, and the Chicora W, High Road, and Stafford Springs fields in Mississippi. The East Texas fields produce primarily from the Smackover Trend at depth! s from 12! ,000 to 12,700 feet and encompass approximately 18,991 gross and 15,872 net Eagle Rock acres. It operates 32 productive wells, which produce gas that contains between approximately 30% to 69% of impurities (hydrogen sulfide, nitrogen, and carbon dioxide). The Edgewood field also contains two productive gas wells in the Cotton Valley at depths of 11,500 to 11,600 feet which produce sweet natural gas. The East Texas production, with the exception of a single well, is delivered to the third party owned Eustace Plant for separation of condensate, removal of impurities, and extraction of natural gas liquids and sulfur for a combination of fees and percentage of proceeds.

In South Texas, it operates wells in the Jourdanton field in Atascosa County, Texas. It operates nine productive wells with 100% working interest and 88% net revenue interest. Its production from the field is primarily from the Edwards carbonates (7,300 to 7,400 feet). On December 31, 2011, the Company had under operation 290 gross (261 net) productive oil wells and 301 gross (251 net) productive natural gas wells. On December 31, 2011, Eagle Rock owned non-operated working interests in an additional 148 gross (18 net) productive oil wells and 1049 gross (72 net) productive natural gas wells.

The Company competes with DCP Midstream, LLC and Enbridge Energy Partners, L.P., Crosstex Energy, L.P., Energy Transfer Partners, LP and Enterprise Products Partners, L.P.

Advisors' Opinion:

• [By Ben Levisohn]

  Eagle Rock Energy Partners (EROC) has advanced 3.9% to $6.60 after it was upgraded to Market Perform from Underperform at Raymond James.

  United Parcel Service (UPS) and FedEx (FDX) blamed bad weather and a glut of packages for delayed holiday deliveries. So far, the market response has been muted: Shares of United Parcel Service are unchanged in pre-open trading, while FedEx has gained 0.4% to $142.50.

• [By Robert Rapier] Most MLP investors have two main concerns: the preservation of capital and reliable income — in that order. These two objectives are, of course, closely linked. An MLP that treats its investors to negative distribution surprises is likely to be an MLP that does a poor job of preserving capital. For example, Eagle Rock Energy Partners (Nasdaq: EROC) has lost 25 percent of its value since announcing a distribution cut in late October.
  

  But how does an investor judge whether an MLP is at risk of a surprising distribution cut? As we discussed recently in The Unkindest Cut for MLPs, some classes of MLP are more susceptible to cuts than others. For variable distribution MLPs, it’s par for the course. Distributions go up, and they go down — depending on market conditions. MLPs focused on upstream oil and gas operations are also at greater risk of a distribution cut during periods of softening oil and gas prices.

• [By Robert Rapier]

  And just as a yield depressed by a big runup in the unit price can signal trouble ahead, so can a higher yield implying higher risk. We dropped Eagle Rock Energy Partners (NASDAQ: EROC) from The Energy Strategist and MLP Profits portfolios last year shortly before declines turned it into a double-digit yielder, and haven�� regretted those decisions for a second.

Best Oil Stocks To Own Right Now: EQT Corporation(EQT)

EQT Corporation, together with its subsidiaries, operates as an integrated energy company in the United States. It operates in three segments: EQT Production, EQT Midstream, and Distribution. The EQT Production segment engages in the exploration, development, and production of natural gas, natural gas liquids, and crude oil in the Appalachian Basin. This segment?s properties are located primarily in Kentucky, West Virginia, Virginia, and Pennsylvania. As of December 31, 2010, it had 5.2 trillion cubic feet of proved reserves across 3.5 million acres. The EQT Midstream segment provides gathering, processing, transmission, and storage services for the independent third parties in the Appalachian Basin. It has approximately 10,900 miles of gathering lines and 770 miles of transmission lines. The Distribution segment distributes and sells natural gas to residential, commercial, and industrial customers in southwestern Pennsylvania, West Virginia, and eastern Kentucky. It also operates a gathering system in Pennsylvania; and purchases and delivers gas to customers. This segment serves approximately 276,500 customers consisting of 257,900 residential customers, and 18,600 commercial and industrial customers. The company was formerly known as Equitable Resources, Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1925 and is headquartered in Pittsburgh, Pennsylvania.

Advisors' Opinion:

• [By Arjun Sreekumar]

  Even Range Resources (NYSE: RRC  ) , another low-cost Marcellus operator with outstanding returns, requires $4 gas prices to generate a 96% IRR on its dry gas wells and a 105% IRR on its super-rich gas wells, while EQT (NYSE: EQT  ) earns a 53% after-tax internal rate of return on its Marcellus wells with gas prices at $4.

Best Oil Stocks To Own Right Now: Cameron International Corp (CAM)

Cameron International Corporation (Cameron), incorporated on November 10, 1994, provides flow equipment products, systems and services to worldwide oil, gas and process industries. Cameron operates in three business segments: Drilling and Production Systems (DPS), Valves & Measurement (V&M) and Process & Compression Systems (PCS). The DPS segment includes businesses, which provides systems and equipment used to control pressures and direct flows of oil and gas wells. The V&M segment includes businesses, which provides valves and measurement systems used to control, direct and measure the flow of oil and gas as they are moved from individual wellheads through flow lines, gathering lines and transmission systems to refineries, petrochemical plants and industrial centers for processing. The PCS segment includes businesses, which provides standard and custom-engineered process packages for separation and treatment of impurities within oil and gas and compression equipment and aftermarket parts and services to the oil, gas and process industries. During the year ended December 31, 2011, it acquired LeTourneau Technologies, Inc. (LeTourneau) from Joy Global Inc. During 2011, it acquired Vescon Equipamentos Industrias Ltda. During 2011, it acquired 51% interest in Newmans Valves. In September 2012, TTS Group ASA sold its drilling equipment business to the Company. Effective August 5, 2013, Cameron International Corp acquired a 75% interest in Douglas Chero SpA, from Consilium SGR SpA.

Drilling & Production Systems Segment

Cameron�� products are employed in a range of operating environments, including basic onshore fields, complex onshore and offshore environments, deepwater subsea applications and ultra-high temperature geothermal operations. The products within this segment include surface and subsea production systems, blowout preventers (BOPs), drilling and production control systems, block valves, gate valves, actuators, chokes, wellheads, manifolds, drilling risers, top drive! s, mud pumps, other rig products and aftermarket parts and services. In addition, the DPS segment designs and manufactures structural components for land and offshore drilling rigs. The segment�� businesses also manufacture elastomers, which are used in pressure and flow control equipment and other petroleum industry applications, as well as in the petroleum, petrochemical, rubber molding and plastics industries. The businesses within this segment market their products directly to end-users through a worldwide network of sales and marketing employees, supported by agents in some international locations. Customers include oil and gas majors, national oil companies, independent producers, engineering and construction companies, drilling contractors, rental companies and geothermal energy producers. The businesses included in this segment are Drilling Systems, Surface Systems, Subsea Systems and Flow Control.

Drilling Systems is a global supplier of integrated drilling systems for onshore and offshore applications. Drilling equipment designed and manufactured includes ram and annular BOPs, control systems, drilling risers, drilling valves, choke and kill manifolds, diverter systems, top drives, draw works, mud pumps, other rig products and aftermarket parts and services. The products are marketed under the Cameron, Guiberson, H&H CUSTOM, H&H, Melco, LeTourneau, Lewco, OEM and Townsend brand names. Surface Systems is a global market in supplying surface production equipment, from conventional to high-pressure, high temperature (HPHT) wellheads, production systems and controls, block valves, gate valves, mudline systems, dry completion systems and aftermarket parts and services. The products are marketed under the Cameron, Camrod, IC, McEvoy, Precision, SBS, Tundra, Willis and WKM brand names. Cameron, which has a global base of installed equipment and an aftermarket presence in hydrocarbon-producing region worldwide, is the provider of surface production equipment. Surface Systems added new s! ales and ! aftermarket facilities in the Marcellus, Eagle Ford and Haynesville shale regions.

Subsea Systems is a provider of subsea wellheads, production systems and controls, manifolds and aftermarket parts and services to customers worldwide, from basic subsea tree orders to integrated solutions, as well as installation and aftermarket support. These products are marketed under the Cameron, Mars, McEvoy and Willis brand names. Flow Control provides chokes, actuators, gears, valve accessories and automation solutions to other Cameron businesses, as well as to other industry manufacturers and directly to end users under such brand names as Cameron, Dynatorque, Ledeen, Maxtorque, Test and Willis. Flow Control has expanded its subsea chemical injection metering valve (CIMV) product line, introducing a high-flow CIMV.

Valves & Measurement Segment

Cameron�� products include gate valves, ball valves, butterfly valves, Orbit valves, double block & bleed valves, plug valves, globe valves, check valves, actuators, chokes and aftermarket parts and services, as well as measurement products such as totalizers, turbine meters, flow computers, chart recorders, ultrasonic flow meters and sampling systems. This equipment and the related services are marketed through a worldwide network of combined sales and marketing employees, as well as distributors and agents in selected international locations. Customers include oil and gas majors, independent producers, engineering and construction companies, pipeline operators, drilling contractors and major chemical, petrochemical and refining companies. The businesses included in this segment are Distributed Valves, Engineered Valves, Process Valves, Measurement Systems and Aftermarket Services.

Distributed Valves provides a range of valves used in the exploration, production and transportation of oil and gas, with products sold through a network of wholesalers and distributors, primarily in North America and to upstream markets in A! sia-Pacif! ic and the Middle East. These valves are marketed under the brand names Cooper, Demco, Navco, Newco, Nutron, OIC, Techno, Texstream, Thornhill Craver, Wheatley and WKM. Engineered Valves provides a range of customized ball, gate and check valves serving the oil and gas production, pipeline, subsea and liquefied natural gas (LNG) markets. Products are marketed under the brand names Cameron, Entech, Grove, Ring-O, TK and Tom Wheatley.

Process Valves provides valves under the brand names of General Valve, Orbit, TBV and WKM for use in critical service applications that are often subject to extreme temperature conditions, particularly in refinery, power generation, including nuclear, chemical, petrochemical, gas processing and liquid storage terminal markets, including liquefied natural gas (LNG). Measurement Systems designs, manufactures and distributes measurement products, systems and solutions to the global oil and gas, process and power industries. The Company�� main product brand names include Barton, Caldon, Clif Mock, Jiskoot, Linco, Nuflo and PAAI. Aftermarket Services provides preventative maintenance, original equipment manufacturer (OEM) spare parts, repair, field service, asset management and remanufactured products for valves and actuators.

Process & Compression Systems Segment

Integrally geared centrifugal compressors are used by customers worldwide in a range of industries, including air separation, petrochemical, chemical and process gas. Products include oil and gas separation equipment, heaters, dehydration and desalting units, gas conditioning units, membrane separation systems, water processing systems, integral engine-compressors, separable reciprocating compressors, two and four-stroke cycle gas engines, turbochargers, integrally-geared centrifugal compressors, compressor systems and controls. Aftermarket services include spare parts, technical services, repairs, overhauls and upgrades. The businesses included in this segment are Process System! s, Recipr! ocating Compression and Centrifugal Compression.

The process systems businesses provide custom-engineered process packages to oil and gas majors, national oil companies, independent operators and engineering, procurement and construction companies worldwide for separation and treatment of oil, gas, water and solids. Products offered include separators, heaters, dehydration and desalting units, gas conditioning units, membrane separation systems, water processing systems and aftermarket parts and services. PCS markets its process systems products under the Cameron, Consept, Cynara, Hydromation, KCC, Metrol, Mozley, NATCO, Petreco, Porta-test, Unicel, Vortoil and Wemco brand names.

Reciprocating Compression equipment is used throughout the energy industry by gas transmission companies, compression leasing companies, oil and gas producers and independent power producers. Reciprocating Compression products and services are marketed under the Ajax, Cooper-Bessemer, CSI, Enterprise, Superior, Texcentric and TSI brand names. Ajax integral engine-compressors, which combine the engine and compressor on a single drive shaft, are used for gas re-injection and storage, as well as on smaller gathering and transmission lines. Superior-brand separable compressors are used for natural gas applications, including production, storage, withdrawal, processing and transmission, as well as petrochemical processing. These high-speed separable compressor units can be matched with either natural gas engine drivers or electric motors. Reciprocating Compression also provides global support for its products and maintains sales and service offices in key international locations. During 2011, approximately 60% of the Reciprocating Compression revenues were generated by sales of aftermarket parts and services in support of the Company�� worldwide installed base of compression equipment. Customers for Reciprocating Compression products include oil and gas majors, national oil companies, petrochemical and re! fining co! mpanies, midstream natural gas companies, independent power producers and compressed natural gas distribution companies.

Centrifugal Compression manufactures and supplies integrally geared centrifugal compressors and provides aftermarket services to customers worldwide. Centrifugal air compressors, used in manufacturing processes (plant air), are sold under the Turbo-Air. Engineered compressors are used in the process air and gas industries and are identified by the MSG. The process and plant air centrifugal compressors deliver oil-free compressed air and other gases to customers, thus preventing oil contamination of the finished products. Centrifugal Compression also provides installation and maintenance services, parts, repairs, overhauls and upgrades to its worldwide customers for plant air and process gas compressors. It also provides aftermarket service and repairs on all equipment it produces through a worldwide network of distributors, service centers and field service technicians utilizing an extensive inventory of parts marketed under the Joy brand name. Centrifugal Compression customers include oil and gas majors, national oil companies, air separation companies, independent power producers, petrochemical and refining companies, midstream natural gas companies and durable goods manufacturers.

The Company competes with Aker Solutions, Balon Corporation, Circor International, Inc., Dover Corporation, Dril-Quip, Inc., Emerson Process Management, FlowServ Corp., FMC Technologies, Inc., GE Oil & Gas Group, Stream-Flo Industries Ltd., National Oilwell Varco Inc., Zy-Tech Global Industries company, Flotek Industries, Inc., Pibiviese, Robbins & Myers Fluid Management Group, SPX Corporation�� Flow Technology Segment, Tyco International Ltd., Weatherford, Ltd., Ariel Corporation, Compressor Engineering Corporation, Demag, Dresser-Rand Company, FS-Elliott Company LLC, Endyn Energy Dynamics, Hoerbiger Group and IR Air Solutions.

Advisors' Opinion:

• [By Dan Caplinger]

  Still, Schlumberger has plenty of ammunition of its own to bolster its growth. The company recently closed on its OneSubsea joint venture with Cameron International (NYSE: CAM  ) to take even greater advantage of opportunities in subsurface production. With Cameron's design, manufacturing, and installation experience, Schlumberger hopes to bolster its own expertise in completing subsea wells and providing reliable equipment and give clients an integrated solution for their sea-drilling needs.

• [By David Smith]

  A promising partnership
  Total outlays for subsea facilities were slightly more than $25 billion in 2011. That number is expected to rocket to about $130 billion by 2020. Among several companies that will benefit from this nearly five-fold growth are Schlumberger (NYSE: SLB  ) and Cameron International (NYSE: CAM  ) .