Sometimes we are left in awe at how fickle and short-sighted markets can be. This has been the case with many of the small to mid-size E&P plays where investors worry about capital expenditures while overlooking the fact that this is one of the few industries where they are getting genuine organic growth and real expansion. Such is the time we live in and as such we believe in playing the hand we are dealt. We are not fazed by the overnight action in China or Japan, and instead view it as a potential opportunity to add to holdings on any serious pullback.
Chart of the Day:
Is it possible that we have now found a bottom in gold prices, or is finding a bottom in this chart already akin to finding fool's gold? Time will tell, but this recent price action is nevertheless interesting.
Chart courtesy of CNBC.com
Commodity prices this morning are as follows:
- Gold: $1393.00/ounce, up by $25.60/ounce
- Silver: $22.525/ounce, up by $0.053/ounce
- Oil: $93.62/barrel, down by $0.66/barrel
- RBOB Gas: $2.81/gallon, down by $0.0094/gallon
- Natural Gas: $4.17/MMbtu, down by $0.016/MMbtu
Oil & Natural Gas
We have continued to watch over the past few trading sessions as names in the Permian Basin, specifically the Wolfcamp/Sprayberry area, have defied gravity and risen even with headwinds developing and big run-ups in stock price recently. The latest bullish news was from Pioneer Natural Resources (PXD) which reported another solid well in the area that had a 24-hour IP Rate of over 1,500 BOE/D. The shares rose on that news and again yesterday after UBS upgraded their price target to $155/share due in part to the solid initial results. Couple this with seemingly unstoppable rise over at Diamondback Energy (FANG) and it is becoming apparent that investors are starting to
