thinking ahead

Smells Good: The Case for Natural Gas

Fitz: good article. But no mention of NG liquids (propane and butane are the biggest). What is the future for these products? And I was surprised that APC wasn't listed, since it trades at less than 9X PE and it's the second largest NG producer in the US.

A Look at Earnings from Transocean and Devon

RIG is a name to put in the drawer and take out once a year for a peek. The drillers have unmatched visibility, and RIG is not only the biggest but one of the cheapest. Most importantly, deepwater drilling is dependant on not only rigs, but qualified people. In this sense RIG has a very nice moat around it. On the call, the CEO admitted RIG would lose market share, but only because it is practically 100% booked for the next several years. Nice business at a 10.5X PE.

One comment on DVN. Why exclude the "one time charge" on gas hedges? That is nonsense. Those hedges are integral to the business as much as the cost of drill pipe. Put the $780 million loss back in the Q1 results - those dollars count too.