As for the Energy sector, this past week started off well but ended poorly with some stocks taking a beating Thursday and Friday. This year’s high fliers, CRC and WLL, took the biggest moves lower and in general, the outperformers over the past three months found themselves towards the bottom of the list. Crude oil falling over 2% on Friday will do that, but we’re encouraged by some Permian producers holding ground.
Search Coverage List, Models & Reports
Search Results1-10 out of 135
Yesterday (6/12/2018) the EIA updated its short-term energy outlook which got us thinking what better time than mid-year to stack our U.S. natural gas supply/demand model versus theirs side-by-side to see where we’re different (see page 3 for comparison).
Happy Sunday and welcome back to the Jam. This past week, we traveled to Texas, visiting clients and companies and had a good back and forth on Permian infrastructure over a BBQ lunch with Keith, following the PAA/PAGP analyst day. Thanks to our clients for providing some feedback on the “good” Texas music recommendations last week and I share World Cup memories and thoughts too.
Happy Sunday and thanks for the feedback on our Miley-Taylor Index. Apologies if I got Party In The U.S.A stuck in your head, but for the week, Team Miley was +6% over Team Taylor. Overall it was an up and down week, but Energy was +2% vs. the S&P500, an encouraging sign considering some skittishness around supply trends leading up to the June 22nd OPEC meeting and WTI down almost -1.5% on the week.
Welcome to the unofficial start of Summer! Hopefully you have something brewing for the holiday weekend to take your mind away from the sea of red on Friday. Here at Wolfe, we’re keeping the vibe going into the week with the 10th Year Anniversary Party on Thursday, an event we hope to see a few of you at. This week also marks my first anniversary at Wolfe and with that, we figured there is no better time to launch a new product.
Busy week here at Wolfe but it was a good week. CXO management meetings in Toronto on Monday (05/14/18). Large Cap transition on Tuesday (05/15/18). Webcast on Wednesday (05/16/18). NYC marketing on Thursday (05/17/18). Plymouth martini, dry, with a twist on Friday (05/18/18).
We spent time with CXO management on Monday (5/14/2018), including EVP Will Giraud, VP – IR and Public Affairs Megan Hays, and Sr Financial Analyst Stephen Sample, with the focus squarely on three key areas – Permian differentials, how will the RSPP transaction add value, and the right balance of growth, spending, and return of cash to shareholders. Each of these has weighed on the stock to some extent with CXO underperforming the Wolfe E&P Index by 18% since the RSPP transaction was announced on 3/28/18, but we still like the combination as scale becomes increasingly important in the Permian. Within, we answer the 20+ questions we outlined ahead of the meetings.
Happy Mother’s Day! We hope everyone is set to enjoy their Sunday brunches with family today (05/13/18) and if you forgot a card for you mother, grandmother, wife, aunt, or friend, let this be a reminder to sneak out and get one…
Cash rules everything around me. – Wu-Tang Clan
The 1Q update showed the consistency CXO’s asset base has become known for, but it should only be getting better over the next twelve months in our view. Production beat out of the gate and concerns around Permian differentials should be mitigated with basis swaps in place, but most important from the update is that CXO’s pad development strategy is delivering better than expected – this is key to getting more out of the RSPP assets. The stock price has recovered to pre-deal levels, but we still think there is more to go for CXO and continue to see the acquisition as supportive for the long-term outlook.
- 1 of 14
- next →