U.S. Oil Production Surges To A 20-Year High At The End Of 2012 [View article]
In Texas, one must mention the Permian boom as well as the Eagle Ford. The Permian is oil. The Eagle Ford produces lots of natural gas, gas liquids, and condensate as well as oil.
Oil will help the US. But a lot of jobs will come from natural gas, gas liquids, and condensate - plastics, chemicals, paper, and even steel.
Valero's New Splitters For Bakken / Eagle Ford Condensates And Its Retail Spin-Off Mean More Value [View article]
Thanks David. These distillation towers could be just the answer in the Marcellus and Utica. The Midwest states and states to the east have needed additional refining capacity, which these towers can replace.
We are witnessing just the beginning of the benefits from horizontal drilling.
Marcellus Shale: Giant Well Parade In Susquehanna County [View article]
Good article. I especially liked your response to a reply where you mentioned IRR and NPV as the key metrics for E&Ps. Fundamental analysis and "technical" analysis do not fit firms who are driven, not by history, but by what they will drill this year and in the next 36 months.
Studying the presentations and listening to the webcasts is part of the game. The other part is spotting CEOs who misrepresent.
Don't Invest In Oil & Gas Before You Read This [View article]
XOM, CVX, TOT, BP, E, and RDS.A are not oil companies; they are integrated global conglomerates that sell Pepsi and Twinkies as well as occassionally look for oil.
They all face unnecessary risk by operating in Asia, Africa, and South America.
Hardcore North American oil E&Ps are the place to be.
A major Michigan landowner sues Chesapeake Energy (CHK) and Encana (ECA), alleging the two energy companies colluded to rig bids for oil and gas rights in 2010. In earlier statements, CHK and ECA have acknowledged holding talks about forming a joint venture, but said no agreement was reached. Emails between Aubrey McClendon and ECA execs could prove damning. [View news story]
It is the Michigan story that caused me to start labeling Aubrey McClendon, a real-life J R Ewing. CHK and ECA have been poorly run.
Bakken Update: Mississippi Lime Well Design Improvements Are Increasing Estimated Recoveries [View article]
"Chesapeake Energy (CHK) sells a 50% interest in its Mississippi Lime play to Sinopec (SNP) for $1.02B in cash. CHK -0.5% premarket." http://seekingalpha.co...
My guess is what CHK is about the same number of acres as what SD still owns. SD -5% today. If you try to price SD bases on this $1.02B, you will be shocked at how little SD would be worth.
Investment Dilemma - Where To Invest In Today's Minefield? [View article]
You are 100% correct. There is danger in every direction.
Americans can buy I-Bonds: gauranteed principle and guaranteed inflation protection. Yield is very low. And there is a yearly limit on the amount you can purchase. Sadly, You can't put them in an IRA.
CNBC's 5 Top Stocks With The Potential To Pop [View article]
NFX pop? So far it is like a can of beer left in the garage for five years, no fizz, absolutely no pop.
The last two quaterly earnings releases have seen NFX stock significantly drop in price. Each time, I lost enough to buy a couple nice pickups.
Undrilled locations vary in quality. A generality, is that firms high-grade; the locations to be drilled several years out have poorer geology. [Of course technology will be better.]
I still think NFX is a great bargain; maybe I'm just too loyal. The only other two stock that I'm excited about (at current prices) are WLL and BGG
Bakken Update: Mississippi Lime Well Design Improvements Are Increasing Estimated Recoveries [View article]
Aren't SD's 1.8 million acres sort of a gross acres, not net acres? My memory is that that was 1,8 was the number before SD's sold part of their interest to JV partners.
Yes, the rigs so far have been old cheapies, mostly because of the shallower debt. However, won't they go to pad drilling ... requiring walking rigs? One series of HP's new walking rigs is designed for pad-drilling shallower wells, like the Mississippian wells.
I'll be curious to see your ideas, if you cover RRC in the Mississippian.
EXCO Resources: Will This Dog Ever Have Its Day? [View article]
I looked at the XCO presentation. XCO is spending most of its capital budget on drilling the Haynesville / Bossier --- XCO gives us no idea of the IRRs of these wells. Marginal, I'll bet.
"You are what you drill."
All this accounting stuff is meaningless. I don't see much of a future for XCO. Whether XCO underpriced or not is like asking whether the price of a 25yo rust-bucket car is a bargain or not.
U.S. Oil Production Surges To A 20-Year High At The End Of 2012 [View article]
Oil will help the US. But a lot of jobs will come from natural gas, gas liquids, and condensate - plastics, chemicals, paper, and even steel.
Valero's New Splitters For Bakken / Eagle Ford Condensates And Its Retail Spin-Off Mean More Value [View article]
We are witnessing just the beginning of the benefits from horizontal drilling.
Marcellus Shale: Giant Well Parade In Susquehanna County [View article]
Studying the presentations and listening to the webcasts is part of the game. The other part is spotting CEOs who misrepresent.
The Voters In Italy Have Spoken [View article]
Read This Before You Invest In Chesapeake Energy [View article]
This is just another JV, just another complication.
As far as entry into the Chinese market goes, it has zero value, absolutely zero.
Don't Invest In Oil & Gas Before You Read This [View article]
They all face unnecessary risk by operating in Asia, Africa, and South America.
Hardcore North American oil E&Ps are the place to be.
Bakken Update: Mississippi Lime Well Design Improvement Is Increasing Estimated Recoveries, Part 2 [View article]
Chesapeake's Mississippi Lime Joint Venture Falls Woefully Short Of Expectations [View article]
A major Michigan landowner sues Chesapeake Energy (CHK) and Encana (ECA), alleging the two energy companies colluded to rig bids for oil and gas rights in 2010. In earlier statements, CHK and ECA have acknowledged holding talks about forming a joint venture, but said no agreement was reached. Emails between Aubrey McClendon and ECA execs could prove damning. [View news story]
Bakken Update: Mississippi Lime Well Design Improvements Are Increasing Estimated Recoveries [View article]
My guess is what CHK is about the same number of acres as what SD still owns. SD -5% today. If you try to price SD bases on this $1.02B, you will be shocked at how little SD would be worth.
Investment Dilemma - Where To Invest In Today's Minefield? [View article]
Americans can buy I-Bonds: gauranteed principle and guaranteed inflation protection. Yield is very low. And there is a yearly limit on the amount you can purchase. Sadly, You can't put them in an IRA.
CNBC's 5 Top Stocks With The Potential To Pop [View article]
The last two quaterly earnings releases have seen NFX stock significantly drop in price. Each time, I lost enough to buy a couple nice pickups.
Undrilled locations vary in quality. A generality, is that firms high-grade; the locations to be drilled several years out have poorer geology. [Of course technology will be better.]
I still think NFX is a great bargain; maybe I'm just too loyal. The only other two stock that I'm excited about (at current prices) are WLL and BGG
Bakken Update: Mississippi Lime Well Design Improvements Are Increasing Estimated Recoveries [View article]
Yes, the rigs so far have been old cheapies, mostly because of the shallower debt. However, won't they go to pad drilling ... requiring walking rigs? One series of HP's new walking rigs is designed for pad-drilling shallower wells, like the Mississippian wells.
I'll be curious to see your ideas, if you cover RRC in the Mississippian.
Why We Must Stop Deficits Now [View article]
This will quickly compound as the U.S. pays interest on interest.
I don't think anything will change the direction significantly. I intend to enjoy country life as Rome burns.
EXCO Resources: Will This Dog Ever Have Its Day? [View article]
"You are what you drill."
All this accounting stuff is meaningless. I don't see much of a future for XCO. Whether XCO underpriced or not is like asking whether the price of a 25yo rust-bucket car is a bargain or not.
Gas prices are not going to improve.