Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

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Texas Pacific Land (TPL) benefited from a higher crude oil price resulting in increased demand for TPL’s water services and higher royalty revenue. TPL remains unhedged to the price of crude oil creating opportunity to generate greater royalty revenue as the price of crude oil advances.</li></ul> <ul type="disc"><li>While there has been increased activity in the Permian Basin, rig count and overall activity remain depressed compared to pre-COVID-19 levels. TPL stands to benefit from energy companies bringing drilled uncompleted (“DUC”) wells online.</li></ul> <ul type="disc"><li>TPL reported third quarter revenue of $123.7 million compared to $95.9 million in the second quarter. We had been projecting $100.5 million.</li></ul> <ul type="disc"><li>We are making some changes to our earnings model for the fourth quarter and all of 2022. The higher price of crude oil could entice more activity in 2022, but we do not believe it would be much of an offsetting factor in the seasonally slow fourth quarter.</li></ul>


Texas Pacific Land (TPL) benefited from a higher crude oil price resulting in increased demand for TPL’s water services and higher royalty revenue. TPL remains unhedged to the price of crude oil creating opportunity to generate greater royalty revenue as the price of crude oil advances. While there has been increased activity in the Permian Basin, rig count and overall activity remain depressed compared to pre-COVID-19 levels. TPL stands to benefit from energy companies bringing drilled uncompleted (“DUC”) wells online. TPL reported third quarter revenue of $123.7 million compared to $95.9 million in the second quarter. We had been projecting $100.5 million. We are making some changes to our earnings model for the fourth quarter and all of 2022. The higher price of crude oil could entice more activity in 2022, but we do not believe it would be much of an offsetting factor in the seasonally slow fourth quarter.

<ul type="disc"><li>Crude oil prices rising in the third quarter sets the course for Texas Pacific Land (TPL) reporting an increase in third quarter revenue. TPL is on course to benefit from the steady rise in crude oil prices.</li></ul> <ul type="disc"><li>Permits in the Permian Basin are up in the last few months and, according to the US Energy Information Administration (“EIA”), energy companies have started production from drilled uncompleted (“DUC”) wells.</li></ul> <ul type="disc"><li>TPL has built a business where there is a compounding effect from the different services the Company provides. The increase in activity should result in TPL selling more water services and generating greater number of surface easement agreements.</li></ul> <ul type="disc"><li>The current pricing environment should enable TPL to easily beat our third quarter expectations and help reverse some of the selling pressure plaguing the shares in recent months.</li></ul>

Crude oil prices rising in the third quarter sets the course for Texas Pacific Land (TPL) reporting an increase in third quarter revenue. TPL is on course to benefit from the steady rise in crude oil prices. Permits in the Permian Basin are up in the last few months and, according to the US Energy Information Administration (“EIA”), energy companies have started production from drilled uncompleted (“DUC”) wells. TPL has built a business where there is a compounding effect from the different services the Company provides. The increase in activity should result in TPL selling more water services and generating greater number of surface easement agreements. The current pricing environment should enable TPL to easily beat our third quarter expectations and help reverse some of the selling pressure plaguing the shares in recent months.

<ul type="disc"><li>The steady rise in crude oil prices resulted in Texas Pacific Land (TPL) reporting an increase in oil and gas royalties in the second quarter.</li></ul> <ul type="disc"><li>An upward move in energy prices has helped restart activity in the Permian Basin. Rig count and overall activity remain depressed compared to pre-COVID-19 levels even though crude oil prices are now higher than they were in all of 2019. The slow progression in active rigs could result in accelerated activity in 2022 as budgets are adjusted for a higher oil price.</li></ul> <ul type="disc"><li>Second quarter revenue reached $95.9 million on an increase in oil and gas royalties. TPL realized royalties on at an average of $65.30 a barrel of oil. The barrel of oil equivalent was $40.83 in the second quarter. Quarter to date, the price of crude oil has remained above TPL’s second quarter average.</li></ul> <ul type="disc"><li>TPL ended the second quarter with approximately $329.1 million in cash. Management has been patiently looking for the right assets to acquire.</li></ul>

The steady rise in crude oil prices resulted in Texas Pacific Land (TPL) reporting an increase in oil and gas royalties in the second quarter. An upward move in energy prices has helped restart activity in the Permian Basin. Rig count and overall activity remain depressed compared to pre-COVID-19 levels even though crude oil prices are now higher than they were in all of 2019. The slow progression in active rigs could result in accelerated activity in 2022 as budgets are adjusted for a higher oil price. Second quarter revenue reached $95.9 million on an increase in oil and gas royalties. TPL realized royalties on at an average of $65.30 a barrel of oil. The barrel of oil equivalent was $40.83 in the second quarter. Quarter to date, the price of crude oil has remained above TPL’s second quarter average. TPL ended the second quarter with approximately $329.1 million in cash. Management has been patiently looking for the right assets to acquire.

United States

APA Corporation operates as an oil and gas company. The Company focuses on exploration and production of oil and gas properties. APA serves clients worldwide.

Marathon Oil Corporation is an independent international energy company engaged in exploration and production, oil sands mining and integrated gas. The Company's operations are focused in North America, Africa and Europe.

EQT Corporation is an integrated energy company with emphasis on Appalachian area natural-gas supply, transmission and distribution. The Company, through its subsidiaries, offer natural gas products to wholesale and retail customers.

Coterra Energy Inc. operates as a diversified energy company. The Company develops of oil and natural gas with a focus on protecting and preserving air quality, water resources, and the land on which we operate. Coterra Energy serves clients in the United States.

Cheniere Energy Partners, L.P. is a provider of clean liquefied natural gas (LNG). The Company offers services such as developing, operating, and constructing natural gas liquefaction and regasification facilities, as well as pipelines and LNG terminals. Cheniere Energy Partners serves energy, utilities, and other trading companies worldwide.

Plains All American Pipeline, L.P. is involved in intrastate crude oil pipeline transportation and terminalling storage activities. The Partnership is also involved in gathering and marketing activities. Plains owns and operates a seasonally heated, common carrier crude oil pipe-line extending from CA to TX, and an oil gathering system in CA.

Plains All American Pipeline, L.P. (PAA US)

Ecopetrol SA is an integrated oil company. The Company owns interests in  oil producing fields in the central area, south, west and north of Colombia as well as refineries, ports for fuel exports and imports on both coasts and the transportation network of pipelines and polyducts throughout the Colombian territory.

Magellan Midstream Partners, L.P. is primarily involved in the storage, transportation, and distribution of refined petroleum products and ammonia.  The Company's asset portfolio includes a pipe line system serving the mid-continent region of the United States, petroleum products marine terminal facilities, petroleum products terminals, and an ammonia pipeline system.

Western Midstream Partners, LP (WES) acquires, owns, develops, and operates midstream energy assets. The Company engages in gathering, compressing, treating, processing, and transporting natural gas and crude oil. WES serves customers in the State of Texas.

Range Resources Corporation is an independent oil and gas company  that explore, develops, and acquires oil and gas properties. The Company conducts operations primarily in the Southwestern, Appalachian and Gulf Coast regions of the United States.

PTT Public Company Limited operates as an oil and gas company. The Company produces, transports, and sells natural gas, crude oil, lubricants, aviation and marine, and petrochemical products. PTT offers fleet cards, storage, electronic bill presentment, and other related services. PTT serves customers in Thailand.

PTT Exploration and Production Public Company Limited explores for crude oil and natural gas, develops fields for production, and produces oil and natural gas. The Company is a subsidiary of the Petroleum Authority of Thailand.

China Petroleum & Chemical Corporation produces and trades petroleum and petrochemical products. The Company offers gasoline, diesel, jet fuel, kerosene, ethylene, synthetic fibers, synthetic rubber, synthetic resins, and chemical fertilizers. China Petroleum & Chemical markets its products throughout China.

ENEOS Holdings, Inc. operates refining and marketing businesses. The Company refines and distributes petroleum and petroleum chemical products. ENEOS Holdings also provides non ferrous metals, electronic materials, and other products.

Santos Limited explores for and produces natural gas, crude oil, condensate, naphtha and liquid petroleum gas.  The Company conducts major onshore and offshore petroleum exploration activities at oil and gas fields in Australia (Cooper/Eromanga Basins), the United States (Gulf of Mexico), Indonesia and Papua New Guinea. The Company also transports crude oil by pipeline.

Origin Energy Limited is an integrated energy company. The Company is an energy retailer in Australia across electricity, gas and LPG. Origin Energy also holds a generation portfolio and fuel position and a renewable energy portfolio, as well as unconventional gas and LNG interests.

Bharat Petroleum Corporation Limited explores for and refines crude oil. The Company manufactures petroleum, petroleum products, lubricants, liquefied petroleum gas, aromatics like benzene and toluene, and other related products. Bharat has retail outlets throughout the country.

INPEX CORPORATION is a holding company established through the reorganization of INPEX Corp and Teikoku Oil.  The Company manages subsidiaries that explores, produces, and sells oil and natural gas.

Formosa Petrochemical Corp. refines crude oil and markets petroleum and petrochemical products.  The Company operates refineries and naphtha cracking plants that provide products such as gasoline, diesel, jet fuel, fuel oil, naphtha, ethylene, and liquefied petroleum gas.  FPCC also owns three utility centers and generates electricity.

Repsol S.A., through subsidiaries, explores for and produces crude oil and natural gas, refines petroleum, and transports petroleum products and liquefied petroleum gas (LPG).  The Company retails gasoline and other products through its chain of gasoline filling stations.  Repsol's petroleum reserves are in Spain, Latin America, Asia, North Africa, and the Middle East and United States.

Texas Pacific Land Corporation owns tracts of land in Texas, previously the property of the Texas and Pacific Railway Co. The Trust issues transferable certificates of proprietary interest pro rata to the holders of certain debt securities of the Texas and Pacific Railway Co. Texas's income is derived from land sales, oil and gas royalties, grazing leases, and interest.

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Texas Pacific Land (TPL US)

TPL: Scaled for Growth

The stock price is discounting TPL's earnings power with water and surface easement revenue expected to grow at double digit rates next year

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TPL Company is benefiting from rising crude oil prices. There has been an increase in activity in the Permian Basin while some energy companies are...

BWS Financial Inc

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