21
Jul

California Dreamin’ Tuesday

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California reaches a budget deal, Ben wrote in WSJ about preparing for the end of the recession, five DJIA components (CAT, KO, DD, UTX, and MRK) reported better than expected earnings with CAT providing up beat guidance.


In Today's Post:

  1. Holdings Watch
  2. Commodity Watch
  3. Stuff We Care About Today - RIG, Earnings Watch: BJS, BTU
  4. Crack Spread Update
  5. Odds & Ends

Holdings Watch: Busy day yesterday.

  • The $10KP:

    • $22,800
    • 46% Cash
    • The Wiki Holdings Tab is updated showing current holdings in the $10KP
    • The $10KP Position Tab is updated showing current holdings with number of contracts and costs.


  • Yesterday's Trades:

    • HAL - Half out of my August $22 Calls for $1.21, up 177% since entry last week. Time to play the remainder with house money as I am a little concerned about the international margin forecast degradation given on the call.
    • HK - Sold the HK $22 August Calls (HKHS) for $2.15 with the stock at 23.10. Stock feels a bit tired today and if I can scoop these back significantly lower before the end of the day I will as I continue to anticipate an operations update here. I continue to hold the $24 August calls as well and may sell and reposition them as well in short order.
    • HAL - Added (15) HAL $22 August Calls for $0.79 with the stock at 21.65 having round tripped the day’s gains after the call and with a tepid market. These are the same ones I sold earlier in the day at $1.21.
    • NFX - Added (5) more NFX August $35 calls (NFXHG) for 2.15 with the stock at 35.10. This brings me to 15 of these with an average cost of $1.72. Earnings should be out Wednesday night with the CC on Thursday.
    • BJS - Added (10) August $12.50 PUTS (BJSTV) for $0.40 with earnings out tomorrow. Expectations are low and put activity is high. Small position for me being taken after listening to the HAL and WFT calls. Perhaps all the bad news is already factored in but I can’t imagine that management has any kind of visibility on the 2H09 or 2010 at this point as to a recovery.
    • Added (10) HK $24 August Calls (HKHO) for $1.20, upping the leverage a bit in the name after taking profits in the $22 strikes sold earlier. I continue to anticipate an operational update here.


Commodity Watch

Crude oil drifted up $0.42 to close at $63.98 yesterday. Today is the last day for the August contract so expect some wild swings. September closed at $65.29 yesterday. This morning September is up $0.60.

  • Nigeria Watch: Zip nada nothing, the recently announced peace has held for nearly a week now.
  • Early Read On Inventories:
    • Crude: Down 2.25 mm barrels
    • Gasoline: Up 1.0 mm barrels
    • Distillates: Up 1.5 mm barrels

Natural gas recovered from an early sell off to close up two pennies at $3.69 yesterday.  This morning gas is trading off slightly.

  • HR 1622 Passed The House: About time someone took a serious look at natural gas as a transportation fuel. It's a baby step but at least its in the right direction.  See story here.
  • Imports Watch: 8.8 Bcfgpd, up 0.7 Bcfgpd from the prior week. Down 0.5 Bcfgpd from year ago levels.
    • Canada: 7.5 Bcfgpd (from 7.0 Bcfgpd last week and 8.2 Bcfgpd this week last year.
    • LNG: 1.4 Bcfgpd vs 1.1 last week and last year.

 


Stuff We Care About Today


RIG Gets Multiyear Deepwater Job With PRB

  • Cajun Express ultra deep capable semisubmersible 
  • Contract of 3 or 5 years

    • 3 years for $585.5 mm or $510,000 per day
    • 5 years would be for $894.3 mm or $490,000 per day
    • These are good rates as Cajun Express' current contract to Chevron is for $490,000 per day and these are above the current average rate for RIG's fleet of 18 ultra deep capable (>7,500 water depth) floaters ... good to see them staying busy at a good price.
  • Contract to begin at end of Cajun Express' current gig in January 2010.
  • RIG will release earnings August 5th.

Earnings Watch:

BJS Reports A Miss

  • The 3Q Numbers (for calendar 2Q09):
    • Revenue of $786.9 mm vs $865 mm expected vs $1.33 B a year ago
      • Pressure Pumping Pain:
        • U.S. Mexico: down 55% YoY; down 34% sequentially (this was 40% of this quarter's revenues) - the sequential decline here was worse than the drop in the rig count due to poor pricing.
        • Canada: down 52% YoY, down 76% sequentially but this is smaller part of the business now and subject to seasonality due to winter breakup and therefore the large percentage drop isn't that meaningful on the sequential comparison.
        • International: down 16% (34% of revenues)
      • Other oilfield service: down 30% (23% of revenues)
    • EPS of ($0.11) reported, or ($0.03) ex items vs $0.00 expected (estimates continued to fall in the last few days) vs:

      • $0.15 last quarter and
      • $0.48 a year ago
  • Key Comments:

    • Workforce off 20% since last fall,
    • Cost cutting measures started to take effect late in the quarter,
    • See a return to profitability next quarter (the Street is looking for $0.05)
  • Guidance: None other than the previous bullet.
  • Nutshell: Weaker than expected quarter. The comment that they will return to profitability is attributable to cost cutting efforts that were not fully discounted in this quarter's results. The international business has been holding up the best as expected however pricing pressures there according to both HAL and WFT yesterday may result in further deterioration of margins even if activity levels remain fairly stable. I'm likely to hold my puts through the call and the day here. 
  • Conference Call: Today, 10 am EST

 

BTU  Reports Ok Quarter; 2009 Guidance Is Poor

  • The 2Q Numbers:
    • Revenue of $1.34 vs $1.444 B expected
    • EPS of $0.49 vs $0.49 expected
  • Guidance:
    • Sales volumes to remain unchanged from prior guidance
    • 2009 EBITDA target of $1.0 to $1.2 B - Street is at $1.33 B.
    • 2009 EPS of $1.00 to $1.40 - Street is at $2.14.
  • Nutshell: I don't own it and will listen to the call before decide to do anything here.
  • Conference Call: Today, 11 am EST

Reporting Tomorrow: 

  • NBR reports after the close; SU reports before the open tomorrow.

Crack Spread Update



I think the slight bump in cracks seen last week is a headfake but stand ready to change my view if we see a second and third week of modestly higher gasoline, diesel, and jet fuel demand.

Odds & Ends

Analyst Watch:

  • (SPWRA) price target cut by Jefferies from $34 to $27.
  • JPM raises tanker outlook, raising (TNK) to Outperform and (VLCCF) to Neutral
  • (HAL) cut to Hold at Argus

96 Responses to “California Dreamin’ Tuesday”

  1. 1
    jat Says:

    Tudor with you on the HAL sell:

    HAL Q2 follow-up ($22.33 – A) – Pretty simple market: beats/good news better than misses/bad news…and will drive near-term outperformance. Strong Q2 for HAL..but investors probably overreacting yesterday (HAL +4.4%, OSX +1.8%) as HAL estimates shouldn’t be moving higher given continued pricing/margin pressure (notable downtick in international profitability guidance). Like HAL’s positioning; 19x 2010 P/E is acceptable valuation..but not barnburner. More below.

  2. 2
    BirdsofpreyRcool Says:

    Also worth noting from TPH today —

    PXP’s T-Ridge saga resumes ($27.95 – B) – Outperformed 170bps yesterday on rumblings that drilling might happen. Decent optionality, but very long road. T-Ridge worth $10/share at $90/bbl (nothing in our $49 target). CA budget proposal includes drilling…next step is Thursday’s state legislature vote (bypassing CA State Land Commission that rejected drilling last Jan). Process doesn’t end there…then for approval of CA Department of Finance, CA Coastal Commission, and federal Minerals Management Service.

  3. 3
    BirdsofpreyRcool Says:

    TechTrader — due to the mo-mo in the mrkt, TT has backed off his “best trade Tues = short.” He is hanging out in neutral with a 50/50 call for today. This is TT’s version of “waiting in the weeds.”

  4. 4
    BirdsofpreyRcool Says:

    HeadTrader is with the mo-mo crowd… he thinks you “buy pullbacks until proven wrong.” Pretty much the definition of jumpin’ on the Mo-Mo Train.

  5. 5
    BirdsofpreyRcool Says:

    Credit rallying hard this morning. But, not much volume behind the moves. So, could change direction fast. Jumpin’ on the Mo-Mo Train can be dangerous. You have to be really really careful and quick… and keep your finger on the trigger to jump off quickly.

    IG 121 1/2

    HY 86 5/8

  6. 6
    zman Says:

    BJS bidding strong on what can only be translated as poor results. On a weak equity futures day I don’t see how negative margins and missed numbers get you up in this market when 2009 and 2010 EPS will be coming down. Will listen to call this morning and will add to puts if it pops and the call doesn’t warrant it.

  7. 7
    zman Says:

    Hear ya Jat, TPH not dummies. Argus cut HAL too.

  8. 8
    BirdsofpreyRcool Says:

    TechTrader talking about potential for panic short-covering from the Elliot Wavers today. He thought Tues would be a down day too. But, has pulled back his odds to 50/50 and says the “real gamble today is trading at all.”

    Just fyi

  9. 9
    zman Says:

    Thanks BOP, good color. GS raised their S&P500 target for year end and their EPS for 2009 and 2010 yesterday but I don’t have the numbers. Anyone?

  10. 10
    zman Says:

    LINE looks like a breakout on the daily chart, through the Spring highs now.

  11. 11
    zman Says:

    ZTRADE:

    BJS – Added (5) August $15 PUTS (BJSTC) with the stock at $14.50, up 1% following an earnings miss but amidst a strong market and commodities back drop. Call in 20 minutes and I will add more, do nothing, or punt at that time.

  12. 12
    zman Says:

    NFX and RRC continue to fly. I may have to pull them back before they release quarterly numbers on Thursday.

  13. 13
    zman Says:

    Tater – when you get a chance can you give your thoughts on NFX, RRC and, of course, HK. Much appreciated.

  14. 14
    zman Says:

    NG up a penny now. Third straight day to be up if it closes here and the second to fight off an opening decline.

  15. 15
    BirdsofpreyRcool Says:

    BJS — CEO thinks we are bottoming right now… actually “hiring back some employees in some locations.”

  16. 16
    Nicky Says:

    Morning all. Not sure why tech trader would think there would be a panic amongst Elliott wavers – remember they can always find a count to suit!

    I too had thought a down day – but I still maintain this can’t on (and it does!). The earnings are crap and its all just spin. Art Cashin did comment the same earlier but said the market was doing its own sweet thing.

    Nasdaq up 10 days in a row – hasn’t happened in 11 years. Ftse up 7 days in a row – also extremely rare.

    We hit 955 SPX which is in my target area, if we go above that then 962 is next then 971.

  17. 17
    zman Says:

    Market looks like it is running out of steam.

    BJS CC Notes 1

    Difficult times for all areas of business.

    Think market in U.S. and Canada is stabilizing in terms of pricing and activity. Seeing some hiring but I’d add it can’t be a net gain in jobs, more likely jobs moving to hotspots as I hear more E&Ps are laying off, not just service names. Simply put if commodity prices don’t bounce and I specifically mean gas there won’t be a bounce in activity in the U.S.

  18. 18
    BirdsofpreyRcool Says:

    Nicky — i knew that comment would get an eloquent response from you. Not disappointed!

  19. 19
    zman Says:

    BOP – did you note TPH sees the 2010 numbers for BJS falling from current consensus around $0.48 down to TPH’s $0.30? Cost reduction just can’t get you there.

  20. 20
    zman Says:

    FLSR up on a Raymond price target cut from 215 to 200.

  21. 21
    zman Says:

    Note to BJS management: Don’t Read The Press Release. Ugh.

  22. 22
    BirdsofpreyRcool Says:

    BJS — he said at the begining of the call that he thought things were bottoming…. but, getting into the details, don’t know how he can come to that conclusion. Not hearing it in the body of the call….

  23. 23
    zman Says:

    BOP – yep, I guess he means flat bottoming and only if you exclude retired capacity.

  24. 24
    Nicky Says:

    Hehe – BOP – well the worst thing about e-wavers is that they can always find a count to talk their book! That said I wouldn’t be without it.

    Bernanke – unemployment looking bad through 2010 and 2011. Hello there is not going to be a recovery if employment doesn’t improve. Just my very basic thoughts that no job means no money to spend and therefore growth is going to remain very slugglish if at all.

  25. 25
    zman Says:

    Nicky – agreed, pretty hard for people to eat, go out and buy stuff etc on corporate cost cutting based earnings gains.

  26. 26
    zman Says:

    BJS flat as we come to the end of the prepared remarks. People going to be asking more about the “bottoming comment” in the Q&A and how much of a reduction in costs they are seeing to let them say next quarter will earnings positive.

  27. 27
    zman Says:

    BTU getting banged on earnings by the way, call in 40 minutes, will listen. Glad I didn’t chase that rally.

  28. 28
    BirdsofpreyRcool Says:

    BJS — are they usually good with their outlook calls? They sound optimistic, but they aren’t presenting the data to back that up.

  29. 29
    Nicky Says:

    My oil count remains the same. This morning could have marked the top. Will have to take out 64.50 area impulsively for that to be the case. Likely to be volatile into expiry today.

  30. 30
    Nicky Says:

    Did I hear that right – CIT may not avoid bankruptcy? Oh well lets rally a bit more on that bad news.

  31. 31
    BirdsofpreyRcool Says:

    BJS — they use Ray Guns to enhance production?? cool.

  32. 32
    zman Says:

    BJS CC Notes 4

    U.S.
    Improved margins in all segments,

    “we think the worst is behind us”

    Note that they said last quarter margins would stabilize as we would see the full benefit of cost reductions in this quarter just past. Hmmm.

    The see slight drop in rigs,

    They think we are approaching a bottom in U.S. pricing, (which sounds right as stated by E&Ps and other service co’s)

    They are encouraged by recent large contracts they’ve gotten in the big oil and gas shales

  33. 33
    VTZ Says:

    At some point the cost cuts in the short term are extremely detrimental to development and growth in the longer term.

  34. 34
    zman Says:

    BJS – this is what they said last quarter regarding margins and cost cutting.

    Offsetting the impact of margin erosions in the U.S. operation somewhat will be the positive contribution from the cost reduction measures we mentioned previously. We will begin to see the full effect of personnel reductions and labor efficiency measures take place during – that took place during the second quarter show through in the third and subsequent quarters.

    Fool me once …

  35. 35
    zman Says:

    BJS – contract wins in the big shales, will you disclose order of magnitude and customers?

    No. Won’t do for competitive reasons. I understand not giving the customers but the ballpark order of magnitude hurts you? Come on.

  36. 36
    VTZ Says:

    I’m with you on the broad based rally Nicky. To me it’s nonsense.

    Yesterday I heard a guy say, “Well we’re at about 65$ S&P earnings for 2010 so if you apply a 15 or 16 times multiple we could rally another 5-10%”

    a)65? really? REALLY?
    b)15 times multiple? In these times? With rates only having one way to go?
    c)15*65 is full valuation and we are basically there already.

  37. 37
    BirdsofpreyRcool Says:

    BJS — beating up on the “smaller players.” So, taking market share?

  38. 38
    zman Says:

    BJS Q&A Notes 2

    Capacity coming down, smaller players are having difficulty completing in the Haynesville due to inadequacy of design. Maintenance has not been good at some of the players and that equipment is going away plus HAL is cutting 20% of production. These are pretty good sized capacity reductions.

  39. 39
    Nicky Says:

    Agree VTZ – the market is starting to look very expensive.

    I don’t hear Bernanke saying anything that positive. Still lots of downside risk.

  40. 40
    VTZ Says:

    Nicky – Do you feel the USDX is going to bounce off 78.30 again? Am I going to get another crack at 1014 gold or do I need a retrace first in your books?

  41. 41
    BirdsofpreyRcool Says:

    z — BJS rallying a bit now. I’m not hearing anything in the call to warrant this. Am i missing something?

  42. 42
    zman Says:

    BOP – they said they are taking some share in the major shales earlier. Would like to hear what the contract sizes were. Given last quarter’s flattish comments and the doubtful looking direction of the rig count I have to look at the rosy, “up from here” comments with a just a little bit of skepticism. I won’t fight the tape but I think if HAL doesn’t get follow through on its “beat” yesterday, given the high forward multiple here, I have to think a miss gets less follow through on a down day tomorrow. For now, the stock looks like it will be ok, marking the market. I would imagine the analysts who were negative pre call will stay that way and the ones who were calling a bottom will see the silver lining here.

  43. 43
    zman Says:

    BOP re 41, I wrote 42 before I saw it, I don’t think so, CEO is definitely selling the sunny side, without giving any numbers. The run seems to be tracking the re rally in the DJIA.

  44. 44
    BirdsofpreyRcool Says:

    z — yeah. Heard the part about taking mrk share from the smaller guys. But, taking share in a shrinking mrkt with lower margins is NOT the same as “seeing a bottom.” Oh well… glass half-full / half-empty argument, i guess. Thx

  45. 45
    BirdsofpreyRcool Says:

    wow. mind-reader! I wondered how you typed fast enough to answer #41 so quickly. ha!

  46. 46
    zman Says:

    VTZ – you might find this interesting on the dollar. I heard Larry Summers commented last Friday that the U.S. should ramp exports. Easiest way to do that is to punk the dollar. The good old fashioned “export your way out of a recession” thinking, only, this time, who will be buying?

    http://seekingalpha.com/article/150107-larry-summers-leading-the-u-s-economy-towards-economic-ruin

  47. 47
    zman Says:

    BOP – I use a mind reading ray gun.

  48. 48
    BirdsofpreyRcool Says:

    you lease that gun from BJS?

  49. 49
    Wyoming Says:

    Z,

    Food for thought, if BJS is having pressure on their margins, where would you estimate the margins of a vendor of the vendor? CRR?

  50. 50
    zman Says:

    BOP – sorry no, proprietary, this one was nearly 20 years in the making.

  51. 51
    zman Says:

    Wyoming – last I heard ceramic was a generally a penny over RCS. And when I hear the BJS guys in the field are cutting costs from every source possible, well …

  52. 52
    VTZ Says:

    If they purge Bernanke in favour of Summers I say watch out below for the dollar. At least Bernanke postures like he has a clue and plans to remove liquidity.

    For all the talk about countries buying treasuries Brazil has actually been dumping them for 2 years straight.

  53. 53
    zman Says:

    BJS CC Q&A

    Ah, someone finally asking the HAL international 300 to 500 bps hit in the 6 quarters question.

    Can’t comment on HALs statement. BJS not seeing that kind of international pressure to reduce margins. Hmmm.

    They keep saying international pricing pressure is no where as near as bad as in NAM. That’s obvious. HAL was speaking about the go forward view.

    Analysts seem to be drinking the coolaid.

  54. 54
    BirdsofpreyRcool Says:

    Summers is a smart guy… but he thought the Stimulus Plan was actually a Stimulus Plan that would create jobs immediately. So, either he is an idiot-savant, or a political tool. Both are bad characteristics as the “independent” Chair of the Federal Reserve.

  55. 55
    zman Says:

    BOP – switching to BTU call. If you linger at BJS, let me know if they say anything interesting.

  56. 56
    zman Says:

    Re BTU – I’m just listening to keep an eye on the coal markets, not going to play the stock, their guidance stunk up the room.

  57. 57
    BirdsofpreyRcool Says:

    BJS call over. Q: “when are you going to add north american capacity?” Answer: “when we see demand pick up and margins expand.” Duh.

  58. 58
    BirdsofpreyRcool Says:

    z — so… whatcha gonna do with your BJS puts?

  59. 59
    zman Says:

    BOP – sitting on them for now, not adding more yet, may not for awhile.

  60. 60
    zman Says:

    Still listening to BTU, has Ben said anything interesting?

  61. 61
    BirdsofpreyRcool Says:

    re: Ben… just watching headlines scroll by. “Get the deficit down” and “won’t comment on social policies.”

  62. 62
    BirdsofpreyRcool Says:

    Summary of Ben’s comments

    http://www.bloomberg.com/apps/news?pid=20601087&sid=artgbcp7ymuk

  63. 63
    zman Says:

    Thanks BOP

  64. 64
    bill Says:

    on 2

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/07/20/ED2M18S3UU.DTL

    this would help pxp and vq

    vq hit 9 today

  65. 65
    zman Says:

    Nice call on the VQ Bill.

  66. 66
    bill Says:

    dnr has an interest in mlp GEL which raised its dividend 10 % last week

  67. 67
    zman Says:

    Listening to BTU, getting a bit into minutia now.

    Just looking about in energy land, most spikes in E&P this morning now gone, volumes very light. Just missed carrying through on my pullback comment on NFX and RRC above. If NFX continues to pull back I will add a 4th and final slug there prior to earnings on Thursday.

  68. 68
    zman Says:

    BTU call over, will have comments in the morning post. Nothing earth shattering, lots of uncertainty from both the met coal (steel) and thermal coal (electricity) markets.

  69. 69
    zman Says:

    ZTRADE

    RRC – Added (5) August $45 Calls (RRCHI) for $2 with the stock down a dime on the day. Earnings are Thursday and I will likely add more of these on strength should be get before the call while taking profits in my $42.50 call position.

  70. 70
    VTZ Says:

    Haha, this didn’t take long.

    NEW YORK (Reuters) – CIT Group Inc warned on Tuesday it could still file for bankruptcy if a cash tender offer for its outstanding notes fails, one day after securing $3 billion in emergency financing from its bondholders.

    The 101-year-old company, which lends to nearly 1 million small and mid-sized businesses, also forecast a second-quarter loss of more than $1.5 billion.

    In a regulatory filing, CIT said the cash tender offer for its outstanding floating-rate senior notes due August 17 was the first step in its recapitalization plan.

    The lender said it could file for bankruptcy if the offer does not succeed. The offer, disclosed on Monday, is $825 for each $1,000 principal amount of notes tendered on or before July 31.

    “The disruptions in the credit markets that began in 2007 … have materially worsened in the first and second quarters of 2009,” the company said in the filing. <—- Sounds good for the economy.

  71. 71
    choices Says:

    Crack investigator Cramer is on the CIT case, sure to find answers as to why Gov did not bail out CIT after billions to other banks-Sheila Bair must provide answers, has invited her to appear, heh-doubt if Goldman has any stake-
    another note, heard that bondholders provided financing at well over 10% interest.

  72. 72
    VTZ Says:

    Maybe the markets aren’t liking Ben or earnings so much after all?

  73. 73
    zman Says:

    Choice – yep, feel better just knowing he’s on it.

    V – feels like a buyers strike, volumes not really enough to be much beyond minor profit taking in most of my names. Market has had too much of a good run methinks.

  74. 74
    BirdsofpreyRcool Says:

    z — put on your old sell-side analyst cap and tell me, after that BJS conf call, would you upgrade the stock? Care to call if we will see any changes in recs there tomorrow? thx

  75. 75
    zman Says:

    BOP – re BJS

    You have 16 analysts at Hold
    2 in the Buy camp and
    4 in the Sell camp.

    I would imagine the Buy’s stay buys as they’re “look through the trough that has a hole in it optimists”

    There may be enough to push some of the Holds into Buys as well if they take management’s comments at face value. To me it seemed there was some faith required in a flattening gas rig count in 3Q that they already expected in 2Q and which did not materialize for gas but did for oil.

    They are not deep in debt, so no troubles there. Maybe no urgent need to whack estimates further but certainly no upward impetus to raise them. At $0.47 for 2010 (with a range of 2 cents to 90 cents) they are not cheap, especially as that earnings level is down from this year’s numbers which are now going to come in close to $0.70 (their fiscal year is September).

    So, long story short (too late), I don’t know, maybe, I certainly don’t see a reason to be overjoyed with the forward valuation given the high degree of uncertainty with the outlook. I also would not be so quick to discount HAL’s international comments yesterday which predict a contraction in margins due to increasing pricing pressure overseas. But maybe BJS is immune to that sort of thing.

  76. 76
    BirdsofpreyRcool Says:

    z — thank you for your thoughtful response. I find trying to time/understand/predict/and profit from the energy services group to be very difficult. So, looking for a little education there. Your comments help a lot. Thanks!

  77. 77
    zman Says:

    Sure BOP but as you are aware I’m an E&P guy first and foremost. Notice howcircular 75 was. You thought I said something when really I was just jogging around the topic. Had they been an E&P spinning that stuff I would be looking for downgrades.

  78. 78
    BirdsofpreyRcool Says:

    z — i understand spinning. But, i also understand standing at the bottom, windmilling your arms, trying to stablize and find a new direction. I think that is where BJS thinks they are. Whether there is more down to go, we shall see. But, they did a good job of making analyst think they are bottoming. So, if a stock isn’t going down, it will go up, all else equal.

    How’s THAT for spinning?

  79. 79
    zman Says:

    I think it moves with the market unless one of the bigger players following it makes a move on the rating. As it isn’t selling off hard I’d guess the post call squawk box chat with the sales forces was pretty much along the lines of “yep, crappy quarter but we knew that going in, feeling pretty neutral here as the company speaks about bottoming”

  80. 80
    zman Says:

    September crude down 20 cents just about $65.

    NG flat to slightly down with 30 minutes until the Nymex close.

    API after the close:
    Street looking for 2 mm barrel draw on crude,
    600K gasoline build and
    1.5 mm barrel build in distillates.

  81. 81
    zman Says:

    Amazing paint drying action for earnings season. Market looks wrung out.

  82. 82
    zman Says:

    I’m hear working on a project if anyone has a question/comment. Somebody who gets API please post when you see it. Thanks.

  83. 83
    zman Says:

    V – It seems they have one mission now with the market … kill the shorts. Lot of up days strung together here.

  84. 84
    zman Says:

    Beerthirty

  85. 85
    zman Says:

    API Watch – bearish looking report

    Crude rose 3.1 mm barrels (expected down 2 mm barrels)

    API says utilization was off 2%

    Gasoline was up 800 K barrels vs 600,000 expected

    Distillates were up 147,000 vs 1.5 mm barrels expected.

    September crude fell 20 cents shortly after the report.

  86. 86
    zman Says:

    Jat – can you see if API saw a big increase in crude imports?

  87. 87
    jat Says:

    I have slightly different data with a gasoline build of 1.3mln. Doesn’t really change a ton. Same data on distillates / utilization. API also reporting that imports were down 563k WoW

  88. 88
    zman Says:

    Imports down? Then their numbers simply don’t add up.

  89. 89
    zman Says:

    On the gasoline you are right, I typed that in wrong, 85 should say 1.3 mm barrel build on gasoline. Thanks.

    On crude, their numbers simply don’t jive.

  90. 90
    Wyoming Says:

    Hard to believe this

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aPn_MSUByx6A

    when you see this

    http://www.news-to-use.com/2009/07/oily-charts.html

  91. 91
    VTZ Says:

    Suncor received competition approval to buy Petro-Canada effective August 1 and it is going to be forced to sell 108 retail stations in Ontario.

  92. 92
    zman Says:

    V – saw that, pretty standard operation south of the border. Tilts them back more towards the upstream which may be a plus in the eyes of the Street. Numbers to be released in the morning. Stock has been moving well with oil.

  93. 93
    tater Says:

    Posted looks at the requested names. Not getting much. I’ll keep them up for a bit and try to work them. Generally am not seeing the names move in a manner conducive to my methodology. TA guys like to cop out by saying that it’s “not trending”. I’ll just say ??? for now.

    RRC – getting nothing
    NFX – take a look at the weekly chart, gives a bit of a clue
    HK – still think the current swing up is overdone but am obviously wrong there.
    Sorry, absolutely worthless for now, sitting out until the murky waters clear for me a bit.

  94. 94
    VTZ Says:

    Agree, the only question was the Petro-Canada clause. Only mentioned it because there was still an arb.

  95. 95
    bill Says:

    http://www.mhenergy.com/HOME/News/6460065.xml?sub=HOME&p=HOME/News&amp;?undefined&undefined

    z might be time to look at pxp again

  96. 96
    bill Says:

    see bop today # 2

    t-ridge worth 10 bucks to pxp

    i might buy options on weds, please wait until im done 🙂

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