Morning US Natgas Cuts, Holdovers, Spare Capacity, and Negative NAVs

By Paul Sankey Published on March 8, 2024 at 10:03 AM

Rounding out our series on the drama of US natural gas – the under-pinning of the global energy economy – we combine the latest news on gas rig cuts with 10K reserves filings to show a concerning picture for the US natural gas market and gassy equity valuations. Relatively, and long term, we like Antero on liquids-rich production, deep inventory and strong propane. Similarly Range (RRC) has the second highest NGL cut after Antero. We …

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Ten Companies, Ten Charts, Ten Recommendations

By Paul Sankey Published on February 29, 2024 at 9:03 AM

Market backdrop: our argument that low US refining utilisation this month (Feb 2024) would tend to pressure crude prices, tighten product inventories, and raise product prices, is not working at all, leading us to demand concerns. Refiners have been weak accordingly, even if background GDP data and better than expected China numbers suggest a good year for refiners. It’s not all bad news: crude oil prices are acting well. Generally with seasonality, tough January weather …

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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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