Statoil (ADR) (NYSE:STO)

Gotta love Norwegian Energy and Oil.

A great Norwegian oil giant that's been aggressively finding new fields around the globe. Pays a nice, safe dividend.

Statoil (ADR) (STO)
Submitted: 12/12/11 2:40 PM :
The stock is currently trading for around $25 a share, versus Exxon at $80 and Chevron at over $100, and with a trailing P/E of 7.4 the stock is nearly as cheap as I am.
But there is more to it than that. Statoil has proved to be forward thinking, which is something I demand out of a long term investment. The company purchased U.S. shale oil and gas producer Brigham Exploration this year, targeting the American energy boom to add depth to its global operations.
For diversity, the company is engaged in a project with the Department of Energy to develop floating wind turbines off the coast of Maine. The company already has a prototype in operation off the coast of Norway.
Finally, closer to its traditional operations, Statoil also recently discovered one of the largest reserves in the North Sea, estimated to contain 900 million to 1.5 billion barrels of oil equivalent. I believe the future is bright for the Norwegian company.

oil set to rise due to iran.

Massive increases in their oil reserves over the past 12 months. They recently discovered another 2-300 million barrels in the Havis prospect. The Barent's Sea projects have turned out to be huge winners for this company. I commend them for being persistent in their drilling prospects in that region. This should be a long term winner, with a very nice dividend as a bonus.

weak euro/strong dollar provides a tailwind (expenses mostly in euros, revenues in dollars)

Angola presalt oil will help these guys grow substantially over the next 5-10 years.

The stock is currently trading for around $25 a share, versus Exxon at $80 and Chevron at over $100, and with a trailing P/E of 7.4 the stock is nearly as cheap as I am.
But there is more to it than that. Statoil has proved to be forward thinking, which is something I demand out of a long term investment. The company purchased U.S. shale oil and gas producer Brigham Exploration this year, targeting the American energy boom to add depth to its global operations.
For diversity, the company is engaged in a project with the Department of Energy to develop floating wind turbines off the coast of Maine. The company already has a prototype in operation off the coast of Norway.
Finally, closer to its traditional operations, Statoil also recently discovered one of the largest reserves in the North Sea, estimated to contain 900 million to 1.5 billion barrels of oil equivalent. I believe the future is bright for the Norwegian company.

Trying to get something out of their new discovery

made several key aquisitions lately... PE at a good level.

recent oil discovery = +30-40% for the next 2-3 weeks. Sell early.

They reported no long-term debt in 2010 or 2009. The Norwegian government is also debt free. Statoil also has the lowest PE ratio of the integrated oil companies I looked at.

$86 oil this week is relatively low. Since the crash in 2008, it has never stayed below that level for long despite repeated financial shocks.

These shares have traded in a range of $18.39 to $29.67 in the last 52 weeks. The 50-day moving average is $24.05 and the 200-day moving average is $24.03. STO is estimated to earn about $2.95 per share in 2011, and $3.24 in 2012. STO pays a solid dividend of about $1 per share, which is equivalent to a 4% yield.

Net income for the six months ended 30 June 2011 is already 14% higher than the net income for 2010 (full year).

Current P/E for 2011: 6.3 (with a grown of 75% on net income)!

10x 2012 estimates put the stock at $31.

Large cap stock, price above 14-day moving average

Category: PVR+

Natural gas

Another piece in the global energy story. Along with Canada another safe oil play.