Morning Sankey 2/5/21

By Paul Sankey Published on February 5, 2021 at 8:34 AM

Max bullish oil here, buy oil leverage. That was the Happy Hour call last evening. By November last year we were saying “All in on the equities” and we ended the year with six investment grade oil stocks and six speculative oil stocks with the call: “buy both groups.” Key specifics: 2022 oil futures a bargain at $52/bbl, Oxy for operational (Brent) and financial (massive debt) leverage. MEG in Canada. Watch out for natgas exposure […]

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Morning Grumpy

By Paul Sankey Published on December 21, 2020 at 9:25 AM

Just as we highlighted yesterday that the oils are stretched on valuation, we get a couple of face slaps this morning. We are sticking with our call for $35/bbl Brent in Q1 on a major dollar rally. See our oils overvalued story here: https://www.sankeyresearch.com/2020/12/20/sunday-sankey-12-20-20/ And we have a couple of classics today: Don’t expect analysts to love a deal announced during Christmas week, but Diamondback $FANG has announced a deal to take over QEP. Diamondback […]

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Morning X-Ys Club

By Paul Sankey Published on November 25, 2020 at 8:47 AM

Last week we published a chart showing the x-y plot of trailing year-to-date free cashflow vs volume growth for the big oil group. This if you remember, prompted Silvio’s legendary joke when I called him to tell him I was having a nightmare with x-y charts, which he misheard to be “having a nightmare with ex-wife chat”. Anyway, a major Long Only investor replied immediately to the note last week pointing out that the chart […]

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