31
May

Wrap – Week Ended 05/30/14

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Another pretty good week for the group taking the ZLT to within inches of its all time highs. Light on the new positions side of things this week but we did add to one position following a bit of post 1Q14 report weakness a secondary and to PVA on Friday in the midst of a sell off inspired by an inaccurate characterization of their reserves by a sellside boutique. See the Friday post for details on that including a note from the company in the comments section.  The blotter is updated.   The natural gas production, imports, and demand slide shows will be included with the Monday post.  Questions under the Wrap post will be addressed in the Subscriber Mailbag section of the Monday post. 

wrap 053014

14 Responses to “Wrap – Week Ended 05/30/14”

  1. 1
    Baylor Says:

    As an airline shareholder I understand the fuel costs are more directly tied to Brent. What's the difference in oil quality and what do you see as the near to medium term (6-9 months) for Brent pricing?  Also, hat are the key things that drive Brent pricing?

  2. 2
    zman Says:

    re 1 – have it included in the subscribe mailbag section of the Monday post. 

  3. 3
    Baylor Says:

    Thanks z

  4. 4
    RB Says:

    out on Thurs/Friday but picked up that the DJ#2 may have been TA'd…maybe that's why Ackerson was so mum at the Bernsten conf. re: the UD…oh well…the saga of Davy Jones

  5. 5
    crysball Says:

    FCX……………and  DJ2

    An  article  in  the  Monday  edition  of  the  Jakarta  Globe   says   the  FCX  board  has  agreed  to  an  unplanned  spend  of   $125 million  to build  a copper/gold Smelter  near  the  gold/copper   mine…………..and  if  completed    by  2017  will avoad   the  extra tariffs  (how do  you spell GREEMAIL)…………that's   $125 million  from  other  Capex  projects  they  had  in planning.  

    Incidentally  says  they are wiring the money  into  an escrow  account  in asia  as  a   good faith gesture……………implied, but not  stated   is  that  they  will now  enjoy labor  peace…………..THE SQUEAKY WHEEL GETS  THE OIL!………….the joy  of  doing  business  in  the 3rd World.

    $125 million  may  be  a drop  in  the  bucket  to  FCX, when  you consider  the  infrastructure  Capex   investment  necessary  to  bring the  ULTRADEEP    to  full production………..so perhaps  it  will  not  mean  anything  in the  long  run…….but  sure  seems like a distraction.

  6. 6
    RB Says:

    at the Bernstein conf. Ackerson discussed that transaction…my understanding is that $125 million is sort of a guarantee/deposit against the cost of the smelter that will cost $2.5 billion.  think Newmont is paying part too.  Indonesia wants to capture that value add inside the country rather than allow them to continue to export in the raw ore form….anyhow that's how I barn yard understand it.  

  7. 7
    elduque Says:

    OT: FCX –

    From Reuters:

    http://in.reuters.com/article/2014/05/30/freeport-mc-indonesia-exports-idINL3N0OG2NS20140530?type=companyNews

    note the new economic minister says the issues will be resolved this week and that exports could restart soon. 

    Re TA- I give up- what is that short for. I assume not good but???

     

     

     

  8. 8
    zman Says:

    re 4,7

    We posted this on Friday

    "EXXI – just got this:

    http://www.data.bsee.gov/homepg/data_center/plans/apm/apm.asp?-166155

    This is the DJ 2 well, apparently TA'd although it saying the well in one place, the Tuscaloosa zone right after that.  They have H2S in the well which is not a good thing, and that could be the reason for the TA.   The sublinks on this page from what used to be the MMS don't work which is odd but not surprising given how many broken links the new MMS websites have. Anyway, probably contributing to the decline in the shares today.   T&A not the end of the world, could be very short, but won't know until they explain it. "

    The H2S was not new by the way. 

  9. 9
    zman Says:

    and TA = temporarily abandoned. 

  10. 10
    RB Says:

    thx El Duque that explains eloquently what I was not splaining at all.

    thx Z for reposting….

     

  11. 11
    zman Says:

    Wow = GDP TMS well and update. 

     

  12. 12
    BirdsofpreyRcool Says:

    GDP.  Guess the TMS works, eh?

    Should send HK flying also…

  13. 13
    zman Says:

    re 12 – hear ya on that, Monday post just came up. 

  14. 14
    zman Says:

    http://zmansenergybrain.com/2014/06/02/monday-morning-welcome-to-june/

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