AmericanEnergyReport.com

April 05, 2011 12:11 ET

American Energy Report Issues Tuesday Midday Energy Update: Citigroup, Bank of America, Ford, Chimera Investment, Pfizer and UnionTown Energy

American Energy Report's Midday Update Features Citigroup, Inc. (C), Bank of America Corp. (BAC), Ford Motor Company (F), Chimera Investment Corp. (CIM), Pfizer INC (PFE) and UnionTown Energy, Inc. (UTOG).

LAS VEGAS, NEVADA--(Marketwire - April 5, 2011) -

Energy Update: Bakken Could Produce A Million Barrels of Oil a Day by 2020

Shale oil production in America's Bakken formation is growing by leaps and bounds, according to the Energy Information Administration. The EIA reports that output from fields in North Dakota and Montana has shot up from a mere 3,000 barrels a day in 2005 to 225,000 in 2010.

Everyone agrees that, spurred on by the Obama administration's newfound love affair with domestic oil, the growth trend is destined to continue. The question for investors in Bakken oil plays is: by how much?

The EIA estimates that the field will produce 350,000 barrels a day by 2035, but some analysts predict much higher numbers.

That's good news for American juniors like Montana-based UnionTown Energy (UTOG). UTOG closed yesterday at $1.68.

And the news could get much better. Harold Hamm estimates production will be a million barrels a day by 2020. Hamm, president of the Continental Resources, is an oil multi-billionaire thought to own more oil and gas than any other American. So oil patch investors listen carefully to what he has to say.

UnionTown is quickly making a name for itself based on its focus on the massive oil reserves trapped in the Heath formation, an oil shale field neighboring the Bakken in central Montana. The company's share price climbed from $0.87 on Monday, March 14 to a high of $2.60 on March 24, 2011. That's a gain of almost 200%.

UnionTown has signed a definitive agreement to acquire a Heath property known as the Musselshell, which has an estimated recoverable oil reserve of 10.4 million barrels. Recently, it announced it was close to finalizing a second property acquisition in the Madison shale Formation, located in the northern part of the state. The property is situated in a prolific oil and gas district, with more than 300 million barrels of oil and 500 billion cubic feet of natural gas produced to date within a 50-mile radius.

The Bakken, which stretches down from Canada into North Dakota and Montana, could hold 3.65 billion barrels in oil reserves. That would make it the largest oil find in U.S. history next to the oil fields in Alaska.

Financial News

Citigroup (C) may spend heavily to build its Asian consumer banking unit over the next three years. The bank could invest as much as $2 billion to revamp branches and boosts service offerings to the region's growing middle class. All told, Citigroup intends to dedicate$3 billion to $4 billion to its consumer operations, mainly in emerging markets, according to Manuel Medina-Mora, head of consumer banking for the Americas.

Specialty finance company Chimera Investment Corp. (CIM) will save roughly $31 million in the first quarter by decreasing its dividend by 18% to 14 cents. Chimera has been raising funds in the last year, including holding three stock sales, to support investments in mortgage assets. The Company invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes.

Technical Analysis

Bank of America (BAC), which closed last week at $13.37, is showing bearish technical indicators. In the past year, the stock has ranged between a low of $10.91 and a high of $19.86. Currently, support is evident at about $13.18, with resistance around $13.70 range. S&P gives BAC a neutral 3 STARS (out of 5) hold rating.

Pfizer (PFE) climbed to a new 52-Week high yesterday. PFE stock has been showing support around $20.17 and resistance in the $20.55 range. Technical indicators for Pfizer are bullish and S&P gives PFE a positive 4 STARS (out of 5) buy ranking.

CEO Pay

The compensation that Ford Motor Company (NYSE – F) pays to its CEO Alan Mulally increased 48% to $26.5 million last year. The large pay raise came after the Detroit automaker posted its best profit in over a decade. Mulally, who took the reins in 2006, is credited with helping Ford stabilize its position in the market.

AmericanEnergyReport.com provides its subscribers with the investment tools they need to realize double- and triple-digit gains. Our alert on UnionTown Energy gave our subscribers the opportunity to earn up to 200% in profits in just two weeks.

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