Time to own the e and p s, WTI pushing $96, don't know how long it lasts, but it is going against the conventional position that we were going to the $80s soon, could still happen but seems investors may come back to oily cos and weather is making the nat gas cos look like great bets. As Eddie Chiles used to say, if you don't have an oil well, get one.
cbd, what was holding BCEI back today, I did buy some more, at the moment, like it better than MPO. Seems the risk adjusted value attractive. A good day for energy. IEA report was fairly bullish for demand, supply could overrun the US infrastructure in the short run.
IEA revised global demand up, Brent up well over a dollar. Cautions on US over supply without exports. Other than the WTI issue, seems oil has a tail wind at the moment. A good announcement could get us a dollar or so. The longer it goes, doesn't give a lot of confidence.
Barron's article this week should move it some.
Thanks to its highly profitable oil-extraction technique, Plano, Texas-based Denbury has plenty of cash to pump into stock buybacks and dividends. Its shares look cheap, and the dividend could triple in two years, Barron’s says.
Seems to be holding well, somewhat surprised that the sector is mostly down and WTI is up, Brent too, cold weather helping gas, at least it stays in the mid $4s this year. I think investors have convinced themselves that oil price will fall. But if it stays where it is, there are companies that will increase prod 30, 40, 50%. Maintaining the same multiples gets you 30, 40, 50% returns and '15 could be up, somewhat less but still significant double digit returns. Seems the sector is a good bet for a couple of years if oil doesn't crater and gas has to get better, or at least the worst is behind. We need some news from MPO to move this up a dollar or two.
Seems if we get anything close to good news, this could move rapidly. Would rather see it stay around $6 until a release. And WTI is cooperating as well, not sure it lasts.
And oil, gas prices depend on China, India... doing well. WTI parity to Brent would add 50 cents to gas prices.
Not the end of the world but would push $4 again. Some are not in a hurry to build pipelines that will improve prices to the producers. Will all come together, but we need a healthy globe. The developed countries are not using much energy, the new Ford 150 next year, rumored to get over 25mpg, 700 lbs less with aluminum, that's a big difference from a few years ago. Still seems that if we want ample energy, it's going to take elevated prices. I do suspect we will test the $80s again before the transportation issues are resolved, seems the e and p s will be trading opps, more your game than mine.
WTI ia at least helping short term, $94.74 today and Brent over $116. I think that US energy growth is in the early innings but will take healthy prices.
That's a good move, from a $400mm market cap to a $30 billion co.
Devon Energy Corporation (DVN) today announced that Thomas L. Mitchell will be joining the company as executive vice president and chief financial officer.
Mitchell brings to Devon more than 30 years of experience in the oil and gas industry. Most recently, after playing an instrumental role in taking Midstates Petroleum Company public, Mitchell served as vice president, CFO and as a director of Midstates. From 2006 to 2011, he served as senior vice president and chief financial officer of Noble Corporation. Prior to joining Noble, he was employed by Apache Corporation for 18 years in various financial and commercial roles. Mitchell holds a Bachelor of Science degree in accounting from Bob Jones University and is a certified public accountant (inactive) in the State of Colorado.
I think with some today, I've bought all I'm going to before some news is released. Would have to drop to $5.50 on no news. Patience is usually rewarded, but not always.
cbd, my thoughts too, trying to buy some more, a little bit moves the stock up. With semi good news, this could explode. I bought some more of your BCEI today. At least with that co, there is not as much anxiety, may be the safest e and p growth bet currently.
Doing my best to support it, bought some more under $6. I suspect they have done a deal, good or bad, will see, and will announce the deal and guidance together. Or maybe the deal fell through, they did say guidance by mid Jan, or maybe I don't remember correctly.
cbd, seems the sector should have been up more today with the move in WTI, 2% up. I'm bullish today on the whole group if we can add a million barrels per day of production every year and the global price stays near $100, the whole industry is significantly undervalued. The volume for MPO seems anemic, at least they aren't selling. Last couple of tranches I've bought seemed to have been lots of small lots. The traders on the board would know better but it seems there are not really big traders here at the moment. One of these days, this stock will take off, a good guidance no would help.
Targa was one I missed, I believe it was between XITXI or Targa and I chose XTXI, should have bought both, although XTXI is merging with DVN and I'm up almost 3x, but didn't see the merger coming. Haven't spent a lot of time with Targa recently, they are they GP of NGLS, seems they will merge with someone. Just saw a CS target raise to $100. I don't think I'd buy it now but if the market gets crushed, might be a choice. They have doubled in the past two years, yields less than 3% .
One that I bought today CEQP, I think will double in a couple of years, but it is an MLP, the GP of Crestwood Midstream CMLP and they are going to grow it rapidly. The debt you see for TRGP incorporates the debt of NGLS so that is misleading. If you don't want an MLP, look at Wiliiams WMB, should pay a $1.75 div this year, 4% gives you a $43 stock price, $39 now. Should pay $2.10 next year, 4% $53, 40% upside with div. TRGP is a good co, just think it's made most of the move, although it will probably grow 20% per year for next two years. What do you like at the moment?
Don, I think they will do well, they seem to be pushing pork in some of their dishes. It's probably my favorite res, don't have one here in Fort Worth. Not many places where you can get a healthy good meal for a small premium of fast food prices. They have started to push wine, beer some, not sure how that is going but that would be a big margin booster. There is another one here in TX to watch Torchy's Tacos, started as a food truck in Austin and now have a few outlets, 20 types of tacos and they sell a bunch of alcohol, were in there the other day mid afternoon, and it had a line.
I also like Panerra, dont own it but would like to. Have owned YUM for years, single digit cost, don't eat there but happy that Asia, India like their offerings. Oil seems to be reacting to the EIA numbers, saw a report that by 20, we will be producing 12 mm b/d, from 7.5 last year, that's amazing. OIl infrastructure cos and oily e and p s should continue to do well for a few more years. There is the scare that the US prod will overrun the market. Not there yet but could happen. My high risk bet is HK, if Wilson can pull it off, it could be big winner in a couple of years. Also bought more MPO yesterday, it may have the most upside if they can execute on their plan. Seems the market is getting impatient for news, guidance. 60s for a few days in No TX.
Birdog's bet on cattle may be better than oil.