By Paul Sankey
Published on June 14, 2024 at 9:14 AM
What segment of the global oil value chain saw a structural increase in margins post-COVID? ~ You got it! Gas Stations is indeed the correct answer. Source: Bloomberg Not only have margins doubled in pump sales – historically a brutally competitive, low margin business, but the industry has growth. Shown below, Casey’s has scaled from 1,700 locations to 2,800 locations in the last decade. Source: Bloomberg We can argue that while a more efficient US …
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By Paul Sankey
Published on March 31, 2024 at 3:39 PM
Greetings! Happy Easter. Spring is here, early spring, in Brooklyn Heights. I have begun to spend long moments staring at the garden. I shift to another spot and stare at the beds again. No meaningful gardening action as of yet. One asparagus tip has emerged from last year’s “growing asparagus” debacle. Things are going well for us; where do we stand at end-Q1 2024? As Q1 closes, the first slide is titled: “Energy dangerously close to …
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By Paul Sankey
Published on March 25, 2024 at 2:11 PM
Gas station stocks: low end consumer weakening. Gas station play Alimentation Couche Tard ($ATD) profit warning. Negative implication for refiners with gas stations, such as DINO. We are backing off our “long gas station stocks” stance but still prefer MUSA (Murphy USA), with its massive buyback and low volatility. But watch for a couple of tough quarters ahead. We like long gasoline (equity ETF is $UGA) as a trade into Memorial Day on supply tightness, …
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