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Sunday Sankey 10/25/20

The Sankey Research website was down this morning, and there is absolutely no truth in the rumour that this is somehow related to Hunter Biden. Rather, the website may have crashed on ANOTHER BIG OIL DEAL, this one a bit of a shock. Years ago, ConocoPhillips announced a massive deal to buy Burlington Resources, a $36bn deal that was announced on 13th December 2005, literally the day before US natgas prices hit their all-time record […]

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2:02 PM

Debate Sankey 10/23/20

It is Friday in Fall, a great time of year in the US. The guy who stole my diary has died. My thoughts are with his family. My wife is kicking me out because she’s fed up with my South American animal puns… ‘OK,’ I said, ‘Alpaca my bags.’ I once met someone who refused to talk to people unless the conversation was about fashion. He was very clothed-minded. Happy hour yesterday evening we were […]

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9:43 AM

Conoco Poncho

$EOG was the name most speculated about as likely to MAKE a takeover in the wake of the Conoco-Concho story yesterday; the stock that reacted most was $XEC, perceived as the most likely next TAKE over company. Continental CLR is seen as needing to deal, $MRO too, $OVV potentially to offer a blizzard of stock, $FANG and Parsley $PE potentially to join the consolidation fray one way or the other; $CDEV is due to be […]

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9:22 AM

Propane Sankey

Yet another bull point on propane. The Morning Sankey goes down the rabbit hole. New York City has made outdoor dining permanent, and the City has lifted the post-911 ban on propane canisters in Manhattan (welders were excepted). With indoor dining limited to 25% capacity, operating restaurants are dependent on outdoor dining, and there has been a scramble to buy propane heaters. My neighbour manages three restaurants and said he was about to buy 15 […]

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10:02 AM

Sunday Sankey 9/20/20

Good day! A chill September wind is blowing across Brooklyn Heights, as summer officially ends and fall very much starts. The market is feeling chills too, with COVID continuing to present a major challenge to policy-makers globally. We remain extremely frustrated by the excessive lock down requirements in New York despite effectively zero COVID. With massive testing, less than 1% positives are being found, and essentially no deaths (statistically speaking). This past week we quoted […]

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11:37 AM

Sunday Sankey 9/13/20

“One thing I know for sure, In the battle between humans and the environment, the environment will win.” This has been one of my standard lines for more than a decade. It sits alongside “environmentalism is a luxury” in terms of the parameters for considering the subject of alternative energy. Another an old line: “the only barrier of entry to being an oil analyst is units.” In this edition of the Sunday Sankey we lay […]

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10:50 AM

Sunday Sankey 8/30/20

Good day, welcome to the week of summer shut down on Wall Street, The usual variety of great slides in the  Sunday Sankey this week, and an entreaty to “play the game” this week of taking vacation. If we all do it, we can overcome. The personal story is a lot longer this week, because as regular clients will remember, “the only person who talks more than me, is my mother.” After I noted that […]

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11:36 AM

Morning Sankey 8/28/20

A photographer was killed in a freak accident today. When trying to take a group photo, a giant wheel of cheddar rolled down behind him and crushed him. Witnesses said people did try to warn him. Sherlock Holmes was reading when Watson came in looking confused. “I say Holmes! Why have you painted our front door bright yellow?” “Lemon entry, my dear Watson,” “Knock knock” ‘Get a warrant’ A couple of thoughts to end the […]

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9:14 AM

Sunday Sankey 8/23/20

This week we can hardly avoid the elevated market levels, the all-time record of growth over value, and the general unease on Wall Street at the nature of current markets. I had the privilege and pleasure of chatting to a favourite client and senior world-famous investor yesterday, quarantined as he is in the Hamptons, and he said in his long career he has never seen anything like this, but that you have to assume that […]

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12:14 PM

The Net Debt Free Cash Acid Test

Good thing that Oxy reporting tonight “exceeded guidance and continued to deliver operational excellence” otherwise they might have reported an even more epically abysmal result. Even with the aforementioned exceeding and excelling, the company reported a net loss attributable to shareholders for Q2 2020 of $8.4bn, or $9.12/share. Excluding writedowns (why? they happen on a recurring basis), the adjusted loss was $1.6bn, or $1.76 per diluted share. Anyway, with Oxy having reported, Sankey Research can […]

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8:18 AM

Dakota Access Shock

PSXP stock is getting hit hard on today’s surprise Dakota Access shutdown ruling, alongside Energy Transfer (ET) and Bakken players such as Contintental, OAS, WPX, NOG and diverse names such as MRO. Winners: Canadian suppliers, Permian and other Basins than Bakken, and in refining “Valero wins by not losing.” Of course in the grand scheme of things, the most environmentally-friendly way to move oil is by new pipeline, less by rail, least by truck. But […]

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4:07 PM
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