Sunday Shaggy and the Pool Tan

By Paul Sankey Published on February 25, 2024 at 7:29 PM

Greetings, There is an embarrassing feeling about current equity markets, for us writing this note, a bit like hosting family lunch on the patio at the country club, while trying to ignore the spectacular naked celebrity gloriously sunbathing by the pool. To be less… conceptual: we got our answer to the question we posed last Sunday on NVDA earnings. ~ It’s hard to avoid staring but we pretend to focus on the slightly dry turkey…

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Permian Resources ($PR): Love Letter to Midland

By Paul Sankey Published on January 16, 2024 at 4:48 PM

The hottest company in the Permian right now, and our TOP PICK for 2023 in US Exploration and Production (E&P), is barely known on Wall Street, nay, barely known outside their home city of Midland, West Texas. PERMIAN RESOURCES ($PR) is a $10B market capitalization, $14B enterprise value (EV) company producing some 300 thousand barrels of oil equivalent per day (kboe/d) of which just under half is oil. Management has an excellent reputation among those…

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California write-downs: Chevron, ExxonMobil, and Brangelina

By Paul Sankey Published on January 13, 2024 at 11:41 AM

This year started with massive writedowns from both Chevron and ExxonMobil in California. You don’t need to read the all-time classic of industry literature, “Oil!”, by Upton Sinclair (nor watch the classic film “There Will Be Blood” which is based on the book) to know there is a long and storied history of oil in California. In this note we write brief histories that led to the write-downs. Spoiler alert, we start with the conclusions,…

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