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Michael Filloon  

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  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    Jeep,

    Always great to hear from you and thanks for commenting. I couldnt agree more, and I know I keep sounding the horn on this but you were one of the first ones to say US oil production would affect world markets while most of us didnt totally agree. Looking at it now, we had been saying the drilling and completion costs would come down but who thought it would be done this quickly. Nice little uptick in production today from the EIA out of the US.
    As for the short to medium term, we had already made some changes to our portfolios recently guessing this would be coming. The drop in oil prices could be faster than expected. We will see if oil holds at $55/bbl, and if not we are looking at around $53.50/bbl. Have a good one and again, always great to hear from you.
    May 28, 2015. 12:02 PM | Likes Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    stevenly,

    Dirk made a good point but there are other things going on right now in a macro environment that could continue to weigh on not just FANG but most of the E&Ps in general. We know the strong dollar continues to weigh on oil and since we expect the US economy to improve this quarter, some think the rate hike may come sooner than later. We also had what looked like a good EIA report, but really production increased in the US while imports decreased some. Also, inventories are still pretty high, and many were hoping US production would buckle while its holding on well and OPEC continues to increase. This is just some of the story, but most expect oil prices to drop sometime before now and October and its possible the drop may be significant. We dont know if we will retest lows, but many firms are dropping these operators in hopes of getting them cheaper a little later in the year. Hope this helps, but FANG isnt the only one down as the whole space is feeling it today.
    May 28, 2015. 11:58 AM | Likes Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    Pablomike,

    Sorry that is the wrong chart, we will have to fix. Those are the most widely held stocks. The reserve writedowns will be interesting. Especially for those with non-core acreage.
    May 28, 2015. 01:05 AM | Likes Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    101investor,

    Your Welcome!
    May 27, 2015. 04:20 PM | 1 Like Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    Profit Propositions,

    As you probably know, capital expenditures can be high in the early stages of development for E&Ps. So although a single well can be very profitable (keep in mind, after payback these wells are basically printing money) over all costs can be much higher for getting pipe in the ground, buildings, etc. I know there are a lot of individuals that do not like E&Ps for that reason, but we try to focus on whether an operator is worth the wait (or investment). FANG is in a very good area, and we tend to focus on that to begin and work around their results, etc. Hope this helps. http://bit.ly/1si3hbl
    May 27, 2015. 04:19 PM | 1 Like Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    boomerbob1,

    I would love to answer that one, but we make actual recommendations at our website (membership required). You can check it out at this link http://bit.ly/1si3hbl or email one of the portfolio managers. Their email addresses are on the site. Sorry about that, but actual stock recommendations have to be made by the firm on that site. Have a great day!
    May 27, 2015. 01:51 PM | Likes Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    101investor,

    $WLL has acreage in the Bakken (you probably already know that) and the Niobrara's Northeast Extension. EOG has acreage all over, and acreage in the Permian, but it is located in the Delaware Basin (Bone Springs), which is quite good. Comparing the economics of the Core Permian and Core Eagle Ford is a little tough when not getting into specifics as well design, source rock, etc. but rates of return are probably close when the best areas are considered. But like I said, thats a real general estimate and we would prefer to take specific up to date well results to figure exact payback times, etc. Hope this helps.
    May 27, 2015. 12:09 PM | Likes Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    creloans,

    Thanks! Im not sure we will be able to hold as oil prices have some upcoming head winds. But longer term, some names still look real good. I think most are waiting for a little better opportunity later in the year, if that occurs. http://bit.ly/1si3hbl
    May 27, 2015. 11:39 AM | 1 Like Like |Link to Comment
  • Bakken Update: Diamondback Energy's Spraberry Results Impress At $60/Bbl Oil [View article]
    Dirk,

    I agree with the current oil pricing environment, and that one should be cautious before fall refining mainenance. Most of the operators in the Midland Basin core are well positioned for another drop in oil prices. Thanks for commenting. http://bit.ly/1si3hbl
    May 27, 2015. 10:18 AM | 1 Like Like |Link to Comment
  • Bakken Update: American Eagle's Well Results Spell Significant Issues If Oil Prices Don't Rebound Soon [View article]
    American Eagle Energy is the latest oil-related bankruptcy $AMZG
    http://yhoo.it/1GYUG29
    May 11, 2015. 10:44 AM | Likes Like |Link to Comment
  • Bakken Update: Bakken Operators May Get $1 Billion Tax Break [View article]
    Cool. Thanks!
    May 6, 2015. 03:50 PM | Likes Like |Link to Comment
  • Bakken Update: Bakken Operators May Get $1 Billion Tax Break [View article]
    MACBLABBER,

    I am so happy you brought this up, now I get what you are saying. You must have some pretty good acreage where you are at. What was the well number, if I may ask? Its OK if you do not want to share, but I would love to take a look at it. This is very important, as I believe your well is one of EOG's very intensive fracs. We all know they do a great job on an average well, but they have been experimenting with much tighter stages and fraccing tight around the well bore. The reason the depletion is much less in your specific well has to do with how much oil they are able to extract from a very small space. There is so much resource in these wells making it out of the well that depletion is minimal and it is more of an issue with getting the resource out than choking it back. Im happy for you, and hope they continue to do this type of frac on your land.
    May 6, 2015. 03:20 PM | 1 Like Like |Link to Comment
  • Bakken Update: Bakken Operators May Get $1 Billion Tax Break [View article]
    MACBLABBER,

    Its looking like this will be real good for the state, too which is good. I haven't checked the chokes on all of them, but looked at quite a few and it doesn't look like they changed that part of the well design. They did say (and you may have read this), that they will not increase completion work until they see a stable oil price of $65/bbl. Whether they stick to this or not its tough to say, but PXD recently said they would be adding rigs next month in the Permian so we will have to take production on a case by case scenario.
    May 5, 2015. 04:54 PM | 1 Like Like |Link to Comment
  • Bakken Update: Whiting's Extensive Refrac Inventory May Provide Significant Upside [View article]
    Aricool,

    All excellent points. Some of these names have had a real nice run as oil has headed higher, and there are a lot of analysts who think there could be some short term pain. The biggest issue is probably storage in the Fall when refiners start maintenance again. Might be one of the bigger reasons that Einhorn put his shorts in when he did. If we have oil storage problems with fraccers ramping up production at $60/bbl oil, we could see another opportunity to get into some of these names. The PXD is a little more of a head scratcher, since the acreage they are sitting on has so many more intervals that could produce and add to reserves longer term.
    May 5, 2015. 01:01 PM | Likes Like |Link to Comment
  • Bakken Update: Whiting's Extensive Refrac Inventory May Provide Significant Upside [View article]
    Hey g8tr,

    I do not know it has been used in any re-fracs, but it is possible.
    Apr 27, 2015. 11:37 PM | Likes Like |Link to Comment
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