Bitter Cold Weather Could Freeze Investors' Returns

Updated
Bitter Cold Weather Could Freeze Investors' Returns

This segment is from Tuesday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

The cold weather suffocating much of the United States is news to no one. What you might want to pay attention to, however, is the impact temperatures reaching 60-below zero can have on oil and natural gas production of companies you are invested in. The Bakken shale is one area that has been hit the hardest. As such, analyst Taylor Muckerman sees much more risk for investors in Kodiak Oil & Gas versus much larger and more diversified peers like Continental Resources , Hess Corporation and Marathon Oil . Of those three, Continental is likely the most worried given their reliance on this region for the vast majority of revenue. For analysis can be found in the video clip below.

The Bakken has been a major reason for our domestic energy boom

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The article Bitter Cold Weather Could Freeze Investors' Returns originally appeared on Fool.com.

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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