HFC margins should improve after Doha and as oil settles just under $40. Refiners, especially well run refineries, should all do well from now until October. Mid-$36 to $37's in range. GLTA
Don't forget another 3.5 million bpd that will be in play once the regime change in Venezuela happens. The assets down there are in bad shape and need some serious repairs and upgrades, after many years of neglect and technicians not knowing what they were doing. It's bad enough that the Orinoco oil is already very difficult on machinery & equipment mainly due to the high sulpher contents in the oil, which would mean that a lot of these assets will be down for a long period of time. Even if you assume total production there will only be cut in half, that is still about 1.75 million bpd taken out of the market for who knows how long. Marginal producers may or may not be able to absorb all of this immediately. Nevertheless, pricing should easily float to at tleast the mid-$40's under this scenario. JMHO
Good luck in going short with this one. You are going to need it!
I don't know about all that Dilo, simply because he hasn't said anything of substance. BUT that jack #$%$ is more than likely than anyone to get us in a shooting war, especially in the Mideast. So yes, he probably will be huge for rising oil prices.
I don't know, but that's a legit question. GE O&G is gearing up for something big! Whether they are asset acquisitions or wholesale companies, who knows??
Absolutely correct. This is a sound move by MRO management, as it consolidates the bottom. At the same time, the timing is correct as oil pricing solidifies, thereby creating equity for holders. Dilution only comes to play for folks trying to sell the stock from this price point. Btw anyone who thinks oil will not be at least in the $40's by the end of the year is mistaken.
You must be insane to short MRO as oil goes up in the $35-$40 range. Once oil averages in that range after two quarters, MRO is going to be solid.
Latest article from 24/7 Wall Street:
"Also Monday morning, analyst Lloyd Byrne at Nomura reiterated his Buy rating on the stock and his price target of $13 a share. He notes that the debate among Marathon shareholders mostly has to do with cash flow and how a company will use cash: to continue funding capex at current futures prices by maintaining core assets, including key staff, and how will that affect existing shareholders?
Byrne expects cash flow from operations of about $630 million in 2016. Figuring in the capex forecast and about $136 million in dividend payments, the analysts see full-year deficit of $900 million. How Marathon manages that shortfall means a great deal to existing stockholders."
The EU will follow DOJ's lead on this one. Quid pro quo, especially considering the fast-track treatment of the SLB-CAM merger creating a European energy conglomerate. Question is -- when will the DOJ sign off? GE O&G appears to be busy on the acquisition front, as it transforms into a "fullstream" company.
Buying oil and gas stocks today remind me a lot of the feelings that I had back in 2008 about buying blue chip manufacturing companies. Than goodness I bought Ford at a cost basis of about $3.50.... and later sold at $8's.
Thank the FED and its cheap money policies, especially the past seven years. Want to know where all that excess liquidity went to? Look no further than the equities market.
It's shorts trying to cover before PPS gets out of hand today, as oil is shooting the $35 mark. Options expiry is this tomorrow. If you're a short and not re-positioned by 10:30 today, you are in a world of hurt.