Keith Kohl has been mostly teasing his Bakken shale oil picks in recent months as he sniffs around for new subscribers to Energy Investor, but lately we’ve seen a new ad campaign that teases a stock he calls the “Lord of the Rigs.”
Which rolls off the tongue nicely, no? This is the “entry level” energy newsletter over at Angel Publishing, “on sale” for $49, so I suppose we could all go out and subscribe and find out the secret name — but it’s more fun, of course, to figure it out for ourselves. That way we can think it over, be open minded, and later, if we decide we love Mr. Kohl’s thoughts, we can subscribe if we feel like it without the pressure of a “secret” weighing us down.
(Why do we do what we do here at Stock Gumshoe? I’ve gotten that question a lot lately. Well, partly because we like to solve mysteries … and because we really, really, don’t like secrets … and partly because we think that if you sign up for a newsletter just to get a “secret” recommendation you’ll probably be buying newsletters you might not like otherwise. And if you’re like most people, paying for a “secret” stock idea will predispose you to loving the idea and buying the stock even if you wouldn’t have looked at it twice yesterday. So we sift through the clues, reveal the stock for you, get you started on thinking about it for yourself … we don’t tell people not to subscribe to newsletters, we just tell ’em not to subscribe simply to get a “secret” tip. So if you feel like subscribing to Energy Investor later on, well, you go right ahead. (Normally I’d tell you to check out the subscriber reviews here at Stock Gumshoe, but there aren’t many recent ones at the moment.))
Anyway, we’ve got a secret “Lord of the Rigs” to find for you today — here’s how Kohl teases it:
“Why Big Oil MUST pay ONE small company “rent” to the tune of $580,000 per day…
“And how that means an extra $17,300 in your pocket for the next 9 years….
“It’s hands down the best retirement income opportunity you’ve NEVER heard of.
“And it’s backed by the mother of all moneymakers, Big Oil.
“In short, the world’s largest, most profitable oil companies ARE FORCED to pay one small company “rent” to the tune of $580,000 PER DAY.
“What is Big Oil renting from this small company exactly? Offshore drilling rigs.
“And then this small company pays out the majority of its rental income to its “partners” every single quarter.
“These Big Oil firms include Chevron, British Petroleum, and ExxonMobil, the most valuable company in the entire world.”
Sounds compelling, right? There are a half-dozen reasonably sized deepwater rig owners, and most of them don’t have anything really proprietary about them — the most recently built rigs with the best safety equipment and highest capabilities (drilling depth, water depth, harsh environment capability) get the highest rates, and all the companies dance around about how much to invest in building new rigs before they’re under lease, and how long to book contracts out into the future versus how many rigs to hold for availability over the next year if demand spikes higher, etc. etc. And several of them pay substantial dividends.
So which one does Kohl like?
Well, we get a few more clues:
“… this deep-sea landlord has increased the size of its payouts to partners a stunning NINE TIMES in just the past three years….
“The “Lord of the Rigs” owns a massive fleet of deepwater oil drilling rigs.
“These rigs are huge, complex structures that take several years to build — at a cost of nearly $1 BILLION each.
“The “Lord of the Rigs” leases out these drilling rigs to Big Oil exploration juggernauts including Chevron, British Petroleum, Exxon Mobil and more. These Big Oil companies then use the rigs to extract oil from deep below the sea floor.
“And these long-term leases lock in high daily rental rates of half a million dollars or more.
“So even if oil prices crash, the “Lord of the rigs” collects its rent money and you get paid!
“The oil company renting the rig must pay the “Lord of the Rigs” the same amount each day — whether oil is $100 per barrel, $80 per barrel, or $50 per barrel….Are you getti