Morning Natural Gas: Cut Rigs Reap Rewards

By Paul Sankey Published on February 21, 2024 at 9:15 AM

Good news: Chesapeake is cutting activity in US natgas. In the “long cuts/short active” gas drillers pairs, we like propane-rich Antero long vs Short EQT who continue to keep activity high. EQT is supported by its hedging, which makes no sense to us: these financial instruments can be used to maintain cashflow, with no need to maintain activity. Generally, we do not like dry gas plays in 2024, but would favour Chesapeake with capex discipline,…

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Morning Comstock: Thelma, the Black Knight, & Forrest, bearish natgas

By Paul Sankey Published on February 15, 2024 at 10:03 AM

The market whisper is that natgas is heading to break the buck (<$1/mmbtu Henry Hub). Time to buy natgas? We are not switching stance until Comstock capitulates.  The company reported results and held its conference call yesterday. ~ ExxonMobil: the company risks Maduro vs Guyana as 1:10 risk where one is low. Clients are asking about Chevron’s delayed proxy too. CVX say the S-4 will be issued this quarter and “nothing recently in the news…

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Morning Klipperty, Becks and Loudermilk

By Paul Sankey Published on January 26, 2024 at 8:32 AM

Mark Viviano of Kimmeridge private equity is always impressive. He was on our Happy Hour last evening, to a good crowd of investors. In 2020 Viviano launched a first fund for Kimmeridge, as a “public activist” model. That fund has now returned money to investors, which triggers Viviano’s return. OVV and Oasis were two high profile investments there. Oasis merged with Whiting to form Bakken play Chord Energy. OVV awaits a strategic move, in the…

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