Recent Posts

Say what? Not there yet… Q2 2022 so far

This note outlines the mega-themes that are emerging mid-way through oils’ reporting season. We listened to a lot of calls, read A LOT of transcripts, and distill it here, for your Saturday afternoon reading by the pool on your yacht. Last evening I reflected that this weekend I was as likely to bit hit by a massive piece of falling Chinese space debris, as to win the mega-millions and get my own yacht with pool. […]

Read More »
2:52 PM

Evening Guanajuato

Sincere thanks to research partner Greg Bordelon, who has been firing company reports at me while I stumble across Mexico in the quest to Morelia. Sorry for the invconvience, but if you would just request the company-specific notes, that would save me doing a ton of cut-and-paste into what would be a monster drone of a note. So email me and I will forward, on these companies: Key points: will we get restructuring at Baker […]

Read More »
9:30 AM

Sunday In Space

Greetings fellow earthlings, (Dow Jones WSJ 7/17/22) — Investors hoping a strong start to earnings season would jolt the stock market from its slump haven’t gotten much satisfaction. Early reports from U.S. companies have refocused attention on some of the biggest challenges facing businesses, from the threat of an economic slowdown to the pressure that rising costs are putting on corporate profits. JPMorgan Chase, Delta Air Lines and industrial supplier Fastenal are among those last […]

Read More »
3:43 PM

Morning Mr Jones

Briefly noted: Gazprom shares plummet -25% as shareholders reject record dividend plan Uniper, largest German buyer of Russian gas, shares plummet -18% as it says it is receiving just 40% of volumes ordered from Gazprom After two weeks in the dark, with no weekly oil data published, the US Department of Energy released the backlog yesterday. The DOE was keen to stress the “systems outage” was not a hack. Better not be, DOE manages emergency […]

Read More »
8:08 AM

Early June Sunday

June, A beautiful day here in Brooklyn Heights, I wish you a wonderful Sunday. I always maintain that if you ignored the media, you would think it’s a wonderful world. And it is! That said, I am enjoying the mass media coverage of the Jubilee. BREAKING NEWS: QUEEN WAVES FROM BALCONY. Headline on my screen here. And we are kicking ourselves for not being in London, given my mother lives right on Hyde Park, in […]

Read More »
3:05 PM

May Day Sunday Sankey 5/1/22

Happy May Day Sunday, Today in partnership with Greg Bordelon of Isentropic Capital, we publish a note on natural gas markets by way of thesis overview to a theme that we will continue to pursue. The note is long graphics, and particularly interesting on US markets. If you only want to read half, read the second US half. It is as noted graphic intense. European gas markets are fundamentally far more un-analysable than US right […]

Read More »
2:48 PM

Sunday Sankey

Quick read today as you got a longer note yesterday on LNG, and I am running late. Just pictures today, and Betsey asked to be on the cover of the Sunday Sankey so it’s a presentation. All the fun favourite charts. Key slides: next week’s earnings highlights starting with Valero. Relative performance, oils performance, high free cashflow yields, and a cash return chart that will be updated on a rolling basis through earnings. Earnings calendar […]

Read More »
5:46 PM

LNG: Gordon & Gorgon

This LNG round up with Gordon Shearer (Poten & Partners guru) from Thursday night took longer to write and I got tangled in the SLB results, which came in okay – readers will know I am not pushing service companies but love oils… “to 10% of S&P500!” Chatting to a client with Midstream expertise before Gordon Shearer, LNG expert, came on Strategy Session Thursday evening, the view was that Kinder Morgan results were decent owing […]

Read More »
5:43 PM

Sunday Sankey 1/16/22

Well, I’m in one of those mindsets where every headline I read my reaction is “Bullish oil.” Iraq Oil report carries a much higher oil production number for Iraq than other sources. My reaction: “Bullish.” Libya struggles, my reaction: “Bullish.” These two elements are theoretically in opposition, but on the one hand, variable Libya performance is ongoing, on the other, the lack of spare capacity in oil markets is clearly driving prices and if Iraq […]

Read More »
2:07 PM

Sunday Sankey 6/6/21

Welcome to summer, hope you are enjoying breaking out your white pants after Memorial Day. Time to drop $250 on new sunglasses. Get in quick before they are $400.   There is no presentation today as I am working on an oil company Board Presentation for Tuesday in Texas. Ramp spending by increasing debt… might actually be the call, or at least the outside-the-box option, notably to make an acquisition. This week I learned what […]

Read More »
1:35 PM

Sunny Saturday Sankey 5/1/21

Winner winner chicken dinner: Hess this past week. ExxonMobil, we think won of the mega-oils. Hess is the “last great oil NAV play” on Guyana, the stock is worth $100/share+ if you believe $80/bbl is coming down the strip; Goldman clearly does, we get there too, with a weak US$ and not dissimilar balances – a demand boom is coming. Wildcards vs GS are Iran and India, alongside the potential for rising US interest rates […]

Read More »
3:11 PM

Morning Sankey 4/22/21

Comparative advantage in ideas. Under the fundamental trade principle of comparative advantage (Ricardo, 1817), if you have two goods, and I have two services, we trade; to have one good and service each, more efficiently produced for each. Under a theory of trade of ideas, If we have two ideas each, and we trade; we each have four ideas. THAT’S RIGHT FOLKS, HAPPY HOUR IS BACK, TONIGHT AT 5PM. Muttering to myself about the latest […]

Read More »
8:25 AM

Sunday Sankey 1/31/21

The feeling is that oil price action this past week was very bullish given that it is traditionally-weak January and it held up vs US$ up and market down moves. Major clients are highlighting SPACs. We see the SPAC route as a major outlet to address the market imbalance between investment $ seeking renewable energy opportunities, and lack of renewable energy market cap plays. In today’s Sunday Sankey we replicate several slides published by Houston […]

Read More »
11:55 AM

Morning Acronyms

One of the great recent charts has been the index performance of unprofitable stocks shown below. It is notable that this index has basically doubled since the last quarterly reporting season. We expect the current reporting season to underline how insane valuations have become across non-profitable sections of the market. Furthermore, quarterly results will provide full year 2020 results and some kind of outlook for 2021. Equally, for the oils, what might be good results […]

Read More »
8:40 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 […]

Read More »
12:14 PM
View All Reports