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QUICK ALERT: Around current PPS of $27, Brigham Exploration (BEXP: 0.00 N/A) is an absolute steal here, With a forward PE below 15 and 30% YOY growth, this is a buying opportunity. We wouldn’t be surprised to see this stock over $35 in the next 90-120 days. For more background on Brigham Exploration, read our recent interview with Bud Brigham.
The latest update on the Bakken Fund is below. For the FAQ, scroll to the bottom of the page
The Bakken Fund is constructed as an index fund of 10 stocks with Bakken exposure. Each stock gets a 10% weighting (total 100%) regardless of market cap. We have included micro caps, small caps, mid caps and large caps in the Bakken Fund to give diverse exposure to both risk and the Bakken region. After extremely solid years in 2009 (180% gain) and 2010 (64% gain) we have pulled into positive territory for the year (as of 6/30/11) with a 5.28% gain. Given the roller coaster ride the economy has seen this year, we don’t expect the fund to sit still through the remainder of the year. We expect Bakken plays to end the year on an up note and outperform non-Bakken plays. Many of the pure plays are off 30% from their 2011 highs and could bounce in the short term.
| BAKKEN FUND 2008 | RETURN: -43.34% | |||||||||||||
| Company | Symbol | Price 1/1 | Price 12/31 | Return | ||||||||||
| Brigham Exploration | BEXP | 7.3 | 3.13 | -57.12% | ||||||||||
| Continental Resources | CLR | 26.13 | 20.71 | -20.74% | ||||||||||
| Whiting Oil & Gas | WLL | 28.83 | 16.73 | -41.97% | ||||||||||
| Northern Oil & Gas | NOG | 6.95 | 2.6 | -62.59% | ||||||||||
| Kodiak Oil & Gas | KOG | 2.2 | 0.31 | -85.91% | ||||||||||
| MDU Resources | MDU | 24.86 | 19.87 | -20.07% | ||||||||||
| EOG Resources | EOG | 87.3 | 65.44 | -25.04% | ||||||||||
| NewField Exploration | NFX | 52.7 | 19.75 | -62.52% | ||||||||||
| GEO Resources | GEOI | 9 | 8.69 | -3.44% | ||||||||||
| Marathon Oil | MRO | 55.21 | 25.41 | -53.98% | ||||||||||
| Total | -43.34% | |||||||||||||
| BAKKEN FUND 2009 | RETURN: 180.49% | |||||||||||||
| Company | Symbol | Price 1/1 | Price 12/31 | Return | ||||||||||
| Brigham Exploration | BEXP | 3.13 | 13.55 | 332.91% | ||||||||||
| Continental Resources | CLR | 20.71 | 42.89 | 107.10% | ||||||||||
| Whiting Oil & Gas | WLL | 16.73 | 35.72 | 113.51% | ||||||||||
| Northern Oil & Gas | NOG | 2.6 | 11.84 | 355.38% | ||||||||||
| Kodiak Oil & Gas | KOG | 0.31 | 2.22 | 616.13% | ||||||||||
| MDU Resources | MDU | 19.87 | 22.51 | 13.29% | ||||||||||
| EOG Resources | EOG | 65.44 | 96.42 | 47.34% | ||||||||||
| NewField Exploration | NFX | 19.75 | 48.23 | 144.20% | ||||||||||
| GEO Resources | GEOI | 8.69 | 13.66 | 57.19% | ||||||||||
| Marathon Oil | MRO | 25.41 | 29.94 | 17.83% | ||||||||||
| Total | 180.49% | |||||||||||||
| BAKKEN FUND 2010 | RETURN 64.72% | |||||||||||||
| Company | Symbol | Price 1/1 | Price 12/31 | Return | ||||||||||
| Brigham Exploration | BEXP | 13.55 | 27.24 | 101.03% | ||||||||||
| Continental Resources | CLR | 42.89 | 58.85 | 37.21% | ||||||||||
| Whiting Oil & Gas | WLL | 35.72 | 58.6 | 64.05% | ||||||||||
| Northern Oil & Gas | NOG | 11.84 | 27.21 | 129.81% | ||||||||||
| Kodiak Oil & Gas | KOG | 2.22 | 6.6 | 197.30% | ||||||||||
| MDU Resources | MDU | 22.51 | 19.97 | -11.28% | ||||||||||
| EOG Resources | EOG | 96.42 | 91.13 | -5.49% | ||||||||||
| NewField Exploration | NFX | 48.23 | 72.11 | 49.51% | ||||||||||
| GEO Resources | GEOI | 13.66 | 22.21 | 62.59% | ||||||||||
| Marathon Oil | MRO | 29.94 | 36.65 | 22.41% | ||||||||||
| Total | 64.72% | |||||||||||||
| BAKKEN FUND 2011 | RETURN +5.28% | |||||||||||||
| (Through 6/30/11) | ||||||||||||||
| Company | Symbol | Price 1/1 | Price 6/30 | Return | ||||||||||
| Brigham Exploration | BEXP | 27.24 | 29.93 | 9.88% | ||||||||||
| Continental Resources | CLR | 58.85 | 64.91 | 10.30% | ||||||||||
| Whiting Oil & Gas | WLL | 58.6 | 56.91 | -2.88% | ||||||||||
| Northern Oil & Gas | NOG | 27.21 | 22.15 | -18.60% | ||||||||||
| Kodiak Oil & Gas | KOG | 6.6 | 5.77 | -12.58% | ||||||||||
| MDU Resources | MDU | 19.97 | 22.5 | 12.67% | ||||||||||
| EOG Resources | EOG | 91.13 | 104.55 | 14.73% | ||||||||||
| NewField Exploration | NFX | 72.11 | 68.02 | -5.67% | ||||||||||
| GEO Resources | GEOI | 22.21 | 22.49 | 1.26% | ||||||||||
| Marathon Oil | MRO | 36.65 | 52.68 | 43.74% | ||||||||||
| Total | 5.28% | |||||||||||||
Question: What is the ticker symbol for the Bakken Fund and how can I invest?
Answer: Unfortunately, The Bakken Fund is a “virtual” fund and you cannot currently invest. We’ll let our readers know if an investment firm starts something similar
Question: Which companies are included in the Bakken Fund?
Answer: We concentrate on publicly traded companies that have significant exposure in the Bakken Region/Williston Basin.
Question: What investment strategy do you use for the Bakken Fund?
Answer: We do not trade in and out of the Bakken Fund, it is simply an index fund with 10 constituents
Question: Why do you not include canadian companies in your fund?
Answer: We currently do not include canadian companies due to limitations with tracking Canadian companies. We will consider Canadian companies as soon as it is possible to do so.
Question: What kind of returns are you expecting with the Bakken Fund?
Answer: We believe the Bakken Fund will outperform other Oil & Gas funds over the next 10 years due to the explosive growth in the Bakken region. Its a simple thesis, but more wells, a greater boepd and advances in drilling will ultimately lead to more production and revenue for companies operating in the Bakken region vs their non-Bakken counterparts. Our target for 2011 is 15% but it is impossible to predict whether the index will meet this objective.
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