In his latest stock teaser presentation, Keith Kohl talked about how the “first Texas oil boom” turned thousands of regular folks into millionaires overnight and said his research indicates that we are now “on the cusp of another millionaire-maker event.”
In short, Kohl believes that the “coming oil boom” could be the largest the world has ever seen and that it’s “one of the most exciting investment opportunities” he’s come across. And the “$5.9 trillion basin in West Texas” is supposedly at the “center of it all.”
“The coming oil boom is shaping up to be the largest, most aggressive one the world has ever seen.
That’s why I’m reaching out to you today.
This is, without a doubt, one of the most exciting investment opportunities I’ve seen in my lifetime.
And the $5.9 trillion basin in West Texas is going to be at the center of it all.”
During the presentation, Kohl teased three “West Texas oil boom” stocks, which he reveals in a report that comes with a $99 subscription to Energy Investor dubbed “The Permian Playbook.” And I think I know what at least one (maybe two) of his picks are.
So with that said, let’s get right into it.
What “$5.9 Trillion Basin” Is Kohl Talking About?
According to Keith Kohl, we are about to experience an oil supply shortage “like the world has never seen before,” and one basin in America could “fill that gap.”
“We are about to experience an oil supply shortage like the world has never seen before…
And one basin in America is set to fill that gap and hand early investors a mountain of cash in the process.”
According to Kohl, there could be an estimated 46 billion barrels of oil within this basin. And he suggests that the reason he refers to it as a “$5.9 trillion basin” is that if oil was priced at $130 per barrel, 46 billion barrels works out to over $5.9 trillion.
“Experts predict that there are 46 BILLION barrels of oil yet to be pulled from this basin…
At a price of $130 per barrel of oil…
That works out to over $5.9 TRILLION of oil yet to be tapped.”
What “basin” is he talking about?
Based on the clues Keith Kohl shared in the presentation and how he referred to it as “the $5.9 trillion Permian oil basin,” he’s talking about the Permian Basin.
The Permian Basin is a large sedimentary basin located in West Texas and New Mexico that contains vast oil fields. How vast? According to Forbes, it’s producing over 5 million barrels of oil per day, which is almost half of the total U.S. supply.
What’s more, the above article points out that a U.S. Geological Survey (USGS) assessment found that the basin contains “over 46 billion barrels of technically recoverable continuous oil resources,” which lines up with what Kohl said earlier.
So, Keith Kohl is referring to the Permian Basin. And he believes this basin could overtake Saudi Arabia’s Ghawar oil field to become the “No. 1 oil-producing basin in the world,” creating an “entirely new batch of millionaires in the process.”
And he specifically teased three companies as the “best way for investors to claim their stake” in the so-called “$5.9 trillion West Texas oil formation.”
“It’s clear to me that this basin could overtake the Ghawar region and swiftly become the No. 1 oil-producing basin in the world…
Creating an entirely new batch of millionaires in the process.
So let me take you through the three companies I believe are the best way for investors to claim their stake in this $5.9 trillion West Texas oil formation. “
What are his top oil picks? Read on.
Keith Kohl’s “West Texas Oil Boom” Stock Picks
Keith Kohl didn’t share many tangible clues about his oil picks, so despite scouring the internet looking for companies that match, I wasn’t able to uncover all three. However, I was able to find one company that looks like a match (and another one that’s close).
In this section, I’ll walk you through the clues he shared about each company and show you what my research uncovered, starting with his first pick.
1. “West Texas Oil Boom Stock #1: The American Underdog”
Based on the presentation, Keith Kohl’s first pick, dubbed “The American Underdog,” is a relatively small oil drilling company that owns over 66,000 acres of land in the Permian Basin, a large portion of which is in the Central Basin Platform (CBP).
“With a market cap of less than $1 billion, it’s a mere speck compared with those giants.
And even though it may not own Saudi oil wells or be a member of OPEC…
It’s scooped up over 66,000 acres of land in the basin!
To put that into perspective, that’s roughly 50 football fields’ worth of oil-bearing property.
And a large portion of that acreage is in the CBP, or “Central Basin Platform.
Nearly 45% of ALL oil pulled from the basin has come directly from the CBP.
So this driller has a major land position in the most oil-dense region of this basin…”
What else did he say about the company?
Not much. But Keith Kohl did mention that the company uses “cutting-edge technology” and dropped another hint about the land it owns.
“And it’s using its cutting-edge technology to access long-forgotten parts of the area.
With such a low market cap, the potential gains here are insane…
Especially considering that under the land it owns, Forbes reports there is an ‘ocean of oil.’
And new estimates have nearly DOUBLED the oil reserve we previously thought existed.
Advanced drilling techniques like ‘stacking’ wells mean the company is going to pull out oil faster than ever before as it accesses multiple layers of the basin in a single play.”
To find his pick, I first looked for public companies with around 66,000 acres of land in the Permian Basin, which didn’t turn up much, but it did lead me to this page on everus.com that provides an overview of the Permian Basin, including some of the top companies operating in the Central Basin Platform area.
And one of the companies listed is Ring Energy, Inc. (ticker: REI), which has a market cap of just under $443 million as of writing (June 2022).
Furthermore, according to Reuters, this company’s leasehold acreage positions total approximately 83,604 gross (64,380 net) acres. And based on Ring Energy’s latest investor presentation, this was their acreage as of December 31, 2021.
I also researched the Forbes “ocean of oil” quote Kohl shared, which was referring to the Delaware basin, an area within the Permian Basin.
So, in addition to the Central Basin Platform, Kohl has essentially said that the company he’s teasing has operations in the Delaware Basin. And it just so happens that, aside from Northwest Shelf, these are the two main areas where Ring Energy operates.
Long story short, Ring Energy is a possible match. But I’m far from certain on this one, given the lack of clues. So it wouldn’t surprise me if he was teasing a different company here.
Nevertheless, let’s take a look at his second pick.
2. “West Texas Oil Boom Stock #2: The Tollbooth Play”
I have a much higher level of conviction about my guess of this pick, the so-called “Tollbooth Play” Keith Kohl says owns the pipelines used to connect major oil basins in the U.S., because he shared some very tangible clues about it.
Here are some of the initial clues he shared:
“The companies that own the infrastructure to move this ocean of oil will reap a massive reward during this oil boom.
I call these kinds of companies ‘tollbooths’ because, simply put, most oil companies need to PAY THEM just to function!
They sit back and collect checks from other companies that use their pipelines to transport and process oil.
Our play in particular has a MASSIVE system of pipelines in place connecting all the major oil basins of America.”
Based on that, it seems Kohl is teasing a midstream oil and gas company, a company with pipelines that move resources from the well (upstream) to homes and businesses (downstream). And according to Kohl, it has “over 50,000 miles of pipeline.”
“It has over 50,000 miles of pipeline shipping hundreds of thousands of barrels of natural gas and petroleum products to market!”
Aside from those clues, Kohl said the company has “increased its distributions to investors like us for 23 consecutive years.” In other words, it’s paid a dividend for 23 years.
“In fact, thanks to this company’s superior operations, it has successfully increased its distributions to investors like us for 23 consecutive years!”
Based on those clues, I believe his pick is Enterprise Products Partners L.P. (ticker: EPD), a U.S. midstream natural gas and crude oil pipeline company headquartered in Texas.
For starters, this is the only company I could find that matches his “over 50,000 miles of pipeline” clue. According to the company website, the partnership’s assets “include more than 50,000 miles of pipelines.”
And second, this page on the company website shows that it has paid a dividend since late 1998, which works out to 23 full years, 1999 to 2021 inclusive. And if you count the one distribution it made in 1998 (and the two so far in 2022), it’s even longer than 23 years.
As a side note… at first, I couldn’t see how the company had “increased its distributions” over that period because it appeared to reduce them in certain years. But then I noticed the company has done two stock splits along the way. And when you take that into account, it looks as though it has increased its distributions for 23 consecutive years, as Kohl said.
So, Enterprise Products Partners L.P. looks like a match.
3. “West Texas Oil Boom Stock #3: The Firm Making America the World’s Top Oil Supplier”
Keith Kohl shared four main clues about his third oil pick.
First, he said the company managed to double its cash flows in one year:
“Thanks to the recent explosion of oil demand, this company has nearly DOUBLED its cash flow in only a year thanks to its advanced techniques.”
Second, he mentioned some of the technology and processes it uses:
“3D seismic technology, horizontal drilling, and hydraulic fracturing are just some of the huge tech advances this company is putting to good use.”
And the last two clues were about its land and daily oil production:
“With a whopping 124,800 acres of land directly inside our basin, it’s already producing over 94,000 barrels of oil each day!”
Unfortunately, after digging through a bunch of different oil and gas companies, nothing I found matched what he said. So this one remains a mystery.
One company, Marathon Oil Corporation, came relatively close, given the amount of land it owns and operations it has in the Permian Basin. But the clue about the revenue and daily oil production doesn’t appear to line up, so I don’t think that’s his pick.
I’m curious to know if you’ve come up with anything with your research, so drop me a comment below if you’d like to share your guess.
In any case, Keith Kohl has put together a research report called “The Permian Playbook: 3 Stocks Set to Profit From America’s $5.9 Trillion Oil Basin” that details his picks. So that’s the best way to find out what company’s he’s teasing.
As with most of these reports, however, the only way to access it is to sign up for a subscription to a paid service, which in this case is Energy Investor.
Recommended: Go here to see my #1 rated stock advisory of 2022
What Is the Energy Investor Newsletter?
Energy Investor is a newsletter service run by Keith Kohl of Angel Publishing focused on energy-related investments, which is one of the main sectors he appears to have focused on over the past couple of decades.
According to Kohl, he’s “been on top of every major trend in the energy industry” for the past 20 years. And his Angel Publishing profile states that one of the “oil plays” he called was the Bakken oil boom, which refers to the 2006 to 2012 North Dakota oil boom.
Keith Kohl is also known for his tech and biotech picks, some of which I’ve covered on this site, but energy is one of the main sectors he focuses on. And the Energy Investor service is where he shares his latest insights and recommendations.
For $99, subscribers get 12 months of access to the service, which according to the website, comes with at least one new recommendation each month. Subscribers also get access to different research reports Kohl has put together (including the “Permian Playbook” report), updates on his picks, access to the model portfolio, and other resources.
As for whether or not it’s worth it, that’s a difficult thing to answer because it ultimately depends on your own goals and preferences. And since I’m not a member of Energy Investor, I can’t recommend it based on my own personal experience.
However, I have looked into numerous stock teasers Keith Kohl has released and, in the process, managed to uncover several of his picks. So if you want to see what other companies he’s teased, check out this archive page.
Keith Kohl’s latest energy-related stock teaser centered around his prediction that the Permian Basin could be at the center of the next major U.S. “oil boom.”
And he teased three companies as part of the presentation, all of which have operations in the Permian Basin, which Kohl referred to as the “$5.9 trillion Permian oil basin.”
The first company he teased is an oil “driller” (AKA exploration and production company) he’s bullish on, which I believe could be Ring Energy, Inc. However, while it does seem to match, I’m not certain about this one, given the relatively limited clues he shared.
His second pick appears to be Enterprise Products Partners L.P., a publicly traded partnership and midstream energy service provider headquartered in Texas. And I’m much more confident about this pick, given how closely it matches what Kohl said.
And as for his third pick, that remains a mystery. Kohl did share some specific clues on it, but nothing I found matched what he said, so I’m not sure what this one is.
Nevertheless, regardless of what Keith Kohl’s picks are, nobody knows if we are headed into a so-called “millionaire-maker event” in the form of a U.S. “oil boom” or not. And there’s no guarantee that his, or anyone’s, picks will make you money.
So if you are going to check out his Energy Investor service, I encourage you to take some of what is said in the presentation with a grain of salt.