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%
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The Bakken Fund FAQ
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
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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
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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.
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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.
The number of active drilling rigs are up by about 6% from our last count in January. We currently stand at 172 total rigs with Continental Resources (CLR: 77.50 +8.68%) and Hess (inc AEZ) (HES: 46.04 +3.23%) leading the way. Expect Continental to increase its lead in 2011 as the company recently raised its 2011 capex budget from $1.36 billion to $1.75 billion, an increase of 28.7%. The increase is due to an accelerated drilling program in the Bakken region. Continental, is the largest leaseholder in the Bakken with roughly 850,000 plus net acres in the region. The counts for most of the key Bakken players are largely unchanged from January with the exception of EOG Resources which saw its count go from 12 to 9. There doesn’t seem to be any news associated with this decrease so we’ll keep our eye on it over the next few months. Smaller players Petro Hunt, Denbury (DNR: 15.74 +4.58%) and Oasis (OAS: 26.35 +6.81%) are continuing to slowly build up the number of rigs in the area and could become formidable players in the region in the next few years.
