Replies to post #108282 on Savvy Trades and Investments

[littlejohn]

Oil company earnings, the debbie downer shorts

on the oil sector are over looking

some good operating results...

Debbie downer shorts are trying to

compare high oil/gas price results of

2023 with way too high, historically

high oil/gas prices in 2022...

It doesn't hold water for shorts on the

oil/gas sector to keep throwing up the

unrealistic prices of 2022 as comparison...

If you will notice in reports, many oil/gas

companies are hedging strongly on the

current high prices...

'2022 pricing is the year to compare against

going forward'...is the common thread coming

out from oil company guidance...

Hedging is a practice required by debt covenants

for companies taking on debt as the oil/gas

sector is quickly consolidating to fewer companies...

Fewer companies that will be able to restrict

production faster, if prices weaken in the future,

is an ongoing trend...


So we watch...LJ

[researcher59]

SBOW (33.48) Q3 looks solid with production up significantly y/y and an acquisition pending. Untaxed EPS came in at $2.13 when adjusting out the future period mark to market hedging losses, a bit less than the $2.27 analyst consensus estimate. However oil prices have been in decline recently, down from $90 to $80/bbl in the past 2 weeks. The futures market has price trending lower, $75 going a year out .... so that's a negative.