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Good presentation today. http://www.enercomdallas.com/webcast/ssn/
We plan to focus on the following objectives in the coming 12 months:
· Continued focus on cost savings and efficiency across all aspects of the Company including lease operating costs and general and administrative costs;
· Continued focus on strengthening the balance sheet through strong capital management;
· The successful integration of the properties and assets acquired in the Foreman Butte Acquisition, and the review and workover of such assets;
· The continued appraisal of our Cane Creek project in the Paradox basin in Utah;
· The continued search and appraisal of new development and exploration projects that add value to our current portfolio at lower oil prices;
· Repayment of the $4 million promissory note issued to the seller in the Foreman Butte Acquisition; and
· Regaining and maintaining compliance with NYSE MKT listing standards.
Our ability to meet these objectives will depend on our ability to raise additional capital to fund the planned development programs.
$NBL: Have been long here for 2 years. Only getting better look at $CWEI deal.
Carl - what is your argument for a crash in barrel price from here?
$BHI - reaction to OPEC cuts. They cut we drill more. It's directly best serving US drillers. Very interesting dynamic.
$FANG Midland Basin wells. Its 63 most recent horizontals had an average payback time of under two years at $50/bbl oil.
The Midland Basin has a large number of intervals, and there are many possible locations. Source rock produce differently, and some may be uneconomic at today's prices.
Better zones are drilled first to get leasehold held by production. Intervals with higher breakevens are done when prices recover.
What are the driving factors behind Uranium that you are watching?
Lots of things to be optimistic here.
$COP - very impressive discovery. It's what the world needs (among others) right now to meet demand through 2020.
$CWEI - as a shareholder very happy.
Imperial Oil (NYSEMKT:IMO): Q4 EPS of C$1.70 beats by C$1.40.
Revenue of C$8.44B (+35.5% Y/Y) beats by C$2.2B.
4) A stock price in the low $50s (versus $58 today) would push WEC’s yield up to 4%, which would represent a seemingly attractive investment opportunity considering the stock’s stability (WEC’s beta of 0.04 means WEC has historically been 96% less volatile relative to the S&P 500) and long-term total return potential.
3) WEC Energy’s valuation doesn’t seem totally unreasonable today, but it’s not exactly a bargain either. Perhaps if U.S. interest rates rise three times in 2017 like the Federal Reserve is predicting, then utilities as a whole will finally experience a meaningful pullback.
2) Assuming the company’s earnings compound by 5% to 7% annually as management expects, WEC’s stock offers annual total return potential of about 8% to 11% (3.6% dividend yield plus 5% to 7% annual earnings growth).
$WEC holding and bullish. Caveats however: When it comes to what matters most, a safe and growing yield, WEC Energy may not be as overvalued as it initially appears, especially given that the company’s long-term earnings growth rate is higher than most utilities' growth profiles.
Thanks for sharing. I am very bullish.
$SN - Sanchez Energy (NYSE:SN) announced that it was launching a 10 million share offering to raise funds for general corporate purposes. This move makes sense since Sanchez is depleting close to 80% of its approximate $500 million year-end cash balance to fund its Comanche acquisition. Sanchez has a significant amount of debt and will likely burn money during 2017 to grow its exit rate production and set itself up for a strong 2018, so replenishing part of its cash pile is a prudent decision. I believe that Sanchez's shares still retain a fair bit of potential upside despite the additional dilution, although attention should be paid to its increasing share count (as a result of the equity offering, as well as the issuance of warrants and shares as part of the Comanche partnership).
$SN - Sanchez Energy (NYSE:SN) announced that it was launching a 10 million share offering to raise funds for general corporate purposes. This move makes sense since Sanchez is depleting close to 80% of its approximate $500 million year-end cash balance to fund its Comanche acquisition. Sanchez has a significant amount of debt and will likely burn money during 2017 to grow its exit rate production and set itself up for a strong 2018, so replenishing part of its cash pile is a prudent decision. I believe that Sanchez's shares still retain a fair bit of potential upside despite the additional dilution, although attention should be paid to its increasing share count (as a result of the equity offering, as well as the issuance of warrants and shares as part of the Comanche partnership).
Incredible growth. Didn't even realize such a population. Interesting value proposition. Are they globalized in terms of energy / fuel consumption or still advancing?
$WY - not a lot of exposure to NAFTA. What do you think biggest influence to these companies will be?
With the acquisition of Anadarko's Eagle Ford play, Sanchez Energy is set to double production within 18 months.
While the short-term benefit of production growth in the middle of an oil price recovery is unquestionable, longer term profitability of the acquired acreage is questionable.
A comparison of Anadarko well production history up till 2015, with Sanchez Catarina well production profile pre-2014 suggests that it acquired less profitable acreage.
$SN In terms of what we should expect for Sanchez stock in the shorter and longer term, the one thing that this deal has going for it is the fact that unlike Catarina, it happened during what is likely to be a sustained oil price recovery.
The combination of higher prices and increased production should be positive for Sanchez stock, which is what we are already seeing in terms of its stock price movement.
This should continue for as long as the trend of increasing oil prices will last.
If the current oil price recovery trend will end and reverse, perhaps due to the next global economic slowdown, Sanchez Energy may find itself in a significantly worse position than it was in going into the 2014 oil price collapse due to the lower quality acreage it is now operating in.
$SN In terms of what we should expect for Sanchez stock in the shorter and longer term, the one thing that this deal has going for it is the fact that unlike Catarina, it happened during what is likely to be a sustained oil price recovery.
The combination of higher prices and increased production should be positive for Sanchez stock, which is what we are already seeing in terms of its stock price movement.
This should continue for as long as the trend of increasing oil prices will last.
If the current oil price recovery trend will end and reverse, perhaps due to the next global economic slowdown, Sanchez Energy may find itself in a significantly worse position than it was in going into the 2014 oil price collapse due to the lower quality acreage it is now operating in.
Catarina's pre 2014 wells were performing significantly better than Anadarko's wells nearby. It stands to reason therefore that Catarina acreage is better than Anadarko's acreage, recently acquired by Sanchez.
Sanchez Energy may be able to repeat what it did in Catarina and improve well costs, as well as production per well. Problem is however that to date, its efforts in Catarina do not come close to bringing Sanchez Energy into the range of profitability at current oil & gas prices.
With the evidence thus far pointing to Anadarko's former Eagle Ford play being inferior geologically speaking compared with Catarina, this means that Sanchez acreage is now less profitable on average than it was before the deal.
That is not good news for a company which has had a hard time showing much profit thus far.
It is one of the strongest dividend payers and is very well positioned in the upcycle.
Shell is under pressure to sell $30B worth of assets from its global portfolio after its takeover of BG Group. Not sure how much legacy at moment.
$CVX cont. - On the other hand, if it turns out that prolific spots in the basin are more limited than previously hoped, Chevron is unlikely to grow its operations in the basin simply to show more growth, as this is not why many investors buy or hold the shares. In such a scenario, a failure to increase Permian CapEx might be seen. A large stake in the basin alongside with the focus on the free cash flow rather than just growth is what makes Chevron a particularly interesting company to watch as an indicator of the Permian's true worth - a canary in the Permian.
$CVX The Permian as a driver of earnings is more important to Chevron, at nearly 6% of its worldwide production, than it is to Exxon Mobil (3.5%) and ConocoPhillips (2%), let alone Shell, BP and TOTAL which will realize no or next to no benefit in the basin in the next several years. As a dividend aristocrat, Chevron does not play the game of repeated public share offerings intertwined with production growth and full reinvestment of incoming cash flows into CapEx. Free cash flow generation is paramount. As a result, examining the company's production and investment plans offers insights about the Permian's true potential.
The Permian as a driver of earnings is more important to Chevron, at nearly 6% of its worldwide production, than it is to Exxon Mobil (3.5%) and ConocoPhillips (2%), let alone Shell, BP and TOTAL which will realize no or next to no benefit in the basin in the next several years. As a dividend aristocrat, Chevron does not play the game of repeated public share offerings intertwined with production growth and full reinvestment of incoming cash flows into CapEx. Free cash flow generation is paramount. As a result, examining the company's production and investment plans offers insights about the Permian's true potential.
On the other hand, if it turns out that prolific spots in the basin are more limited than previously hoped, Chevron is unlikely to grow its operations in the basin simply to show more growth, as this is not why many investors buy or hold the shares. In such a scenario, a failure to increase Permian CapEx might be seen. A large stake in the basin alongside with the focus on the free cash flow rather than just growth is what makes Chevron a particularly interesting company to watch as an indicator of the Permian's true worth - a canary in the Permian.
Shell’s assets are said to have caught the attention of former Centrica boss Sam Laidlaw, who reportedly was in talks with Shell over a deal with his Neptune P-E backed fund.
Shell is under pressure to sell $30B worth of assets from its global portfolio after its takeover of BG Group.
$RDS.A Royal Dutch Shell's (RDS.A, RDS.B) plans to sell off U.K. oil assets are expected to move ahead within weeks, with interest from P-E backed investment as well as France's Engie (OTCPK:ENGIY) amid rising investor confidence in the oil market recovery, the Telegraph reports.
HAL says Q4 North America revenue rose 9% Q/Q but fell 16% Y/Y to $1.8B, while segment operating results improved to $28M from a $66M loss in Q3, driven primarily by increased pricing and utilization throughout the U.S. land sector and effective cost management; international revenue rose 2% Q/Q to $2.2B.
$HAL Halliburton (NYSE:HAL) -1.6% premarket following a mixed Q4 report in which earnings came in better than expected but revenue dropped by a steeper than expected 20%.
HAL warns of weakness in markets outside of North America, as "the North America market appears to have rounded the corner, but the international downward cycle is still playing out," echoing comments made last week by Schlumberger.
HAL says Q4 North America revenue rose 9% Q/Q but fell 16% Y/Y to $1.8B, while segment operating results improved to $28M from a $66M loss in Q3, driven primarily by increased pricing and utilization throughout the U.S. land sector and effective cost management; international revenue rose 2% Q/Q to $2.2B.
@Rom - channel has been tight but trend is our friend here.
@Ecomike - What's the outlook for 2017 from where we are?
$SLB - Most accurate would be in SEC filings check 8k around that time.
$AMRS - yes very good ROI. Looks too heavy now?
... wins the race. Long here.
What is your opinion here through end of year. Value proposition is strong in 2017 imo.
$XOG - The first IPO for a U.S. oil and gas explorer in more than two years was a winner, showing there is still demand for shares of new energy companies despite the weak low oil price environment.
Extraction Oil & Gas (Pending:XOG), which operates on ~224K acres in Colorado’s Wattenberg Field, sold 33.3M shares yesterday at $19 each, and today ended its first day of trading up 15% at $21.85, valuing the company at ~$2.4B.
The strong results could help pave the way for other oil and gas companies that have been weighing IPOs; closely held explorers such as Jagged Peak Energy and Brigham Resources reportedly have been preparing their own IPOs.