Energy Lender Price Survey, page-7

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buc

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27/02/15

16:46

Post #: 14832529
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Originally posted by cmonaussie ↑

Are you thinking of a short term price rally Buc?

Yes the BHI survey shows amazingly steep drop in rigs. Have you drilled down (pun intended) into the details. What do you observe.

3Q fall in actual gross production - certainly matches up to my readings.

Think I might have highlighted this before around discussion of inventory and EIA publishes data on this at least every other week, but what happens when storage is "full", particularly Cushing as that's the determining factor for WTI. As a shareholder of PAA, I listen to their earnings call amongst other things, and their expectation as a pipeline and storage company is that Cushing will be "full" in 2 months time.

What then I wonder. That is the price contango working against the producer (good for the marketer who can buy now, store & sell later). This happens before production forecast to drop.

Be able to repost an updated Cash Margin sheet on Tuesday with the Feb WBS avg price from PAALP.

You're right - it has been kind of quiet around here.

Thought this remark from CEO of ROSE (and EFS and Permian E&P co) was interesting and they too got spanked for earnings miss.

"In our Gates Ranch Far South area in the first two years of production, 30% of the reserves are recovered and nearly 50% of the present value is generated. Beyond our need to meet our lease commitments and hold our core acreage positions, we believe our inventory of drilling projects are more valuable in the ground at these commodity prices."

They cut their capex and production outlook (just as CHK did) and it seems Wall St takes no prisoners - apparently growth at any price was the flavor of the day. I'm with EOG - they have the plan and the scale.

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Short term rally to come, or things are so dire even the Saudi oil minister is talking things up.

SSN Price at posting: 1.3¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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