Wrap – Week Ended 6/26/15



As usual, questions and comments under the wrap will be addressed in the Monday post.

Please note the Housekeeping Watch in the Friday post for the 3Q15 quarterly contest for a chance to win something cool. To end add you pick under the Friday post (1 pick per subscriber and they are first come first serve so please check the list and make sure you drop the word "Contest" in with your pick and if short please say so).  Good luck.   

The longer term portfolios continue to tread water with the energy indexes (up 1 to 4% this week vs a flat group). We've seen the recent 2 month pull back as an opportunity to add to quality and leverage distressed names and started the process of adding names last week in both the medium and long term portfolios. Please see last Monday's post for comments on our short term thinking here.

And see the Blotter here for our subsequent trades as well as the last several years of trades.

We had a great time in Vancouver (Go USA!) with Keith Schaefer as a guide and will be doing an interview with him in the coming week. Keith's a smart egg and is all over ethanol and energy items that drift into and beyond our focus and is well worth paying attention to. 

We put out a couple quick SA articles for public consumption on WPX and PVA during the week here after having put them out days before on the site.  

We spoke with distressed name HK on Friday and will have formal comments in the coming week (glad I delayed that piece as things are less neutral and more positive than most see) before they hit the northeast corridors on a marketing trip with a new presentation. 

Have questions about Z4 Research? Send them here zman@zmansenergybrain.com.

Have a great rest of your weekend and best, Z


wrap 062615

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6 Responses to “Wrap – Week Ended 6/26/15”

  1. 1
    Baylor Says:

    Regarding Natural Gas prices, I seem to remember reading or hearing someone say (for some reason I think it was Jeff Mackey) a couple of years ago that there hasn't been an august where NG prices were higher than July in over or about 20 years.  Is there any truth to that?

  2. 2
    zman Says:

    SPX futures down 32

    DJIA fut down 250

    Oil off $0.80

    Dollar index up 0.7%

  3. 3
    zman Says:

    re 1 – yes but the spread has been narrowing each year, recent years about a dime of difference. As natural gas increases generation share and more demand occurs in the former non peak months that relationship will hold less meaning. 

  4. 4
    brodway Says:

    re: 3

    amazing how coal use has dropped off….nat gas is the way of the future…someone noted equity prices of coal companies earlier in the week and it was a bit of a reality check 

  5. 5
    brodway Says:

    S&P futures trading at 2059…..mid year and the markets are flat on a recovering US economy….we are being told labor markets are improving and the economy is doing just fine….then why is it that we have to support a zero percent interest rate policy?….isn't that counterintuitive….maybe i have to brush off my economics books, but when the economy is picking up and animal spirits are tuned up, demand for money and interest rates move higher….i think i trust the labor statistic numbers as much as the EIA production reports these days….

    If the gov't lacks the sense to support the very same industry that was responsible for creating thousands of jobs while the financial crisis had plagued just about every other industry in the US, then they lack the foresight that the US economy can just as quickly resume the recessionary pressures that we were faced with since 2008. 

    for beginners, lift the export ban. let the oil industry boost the demand for industrial equipment and materials that will act as a multiplier for every other industry. 

    now back to the glass of vino

  6. 6
    macguyver Says:

    Sundance – news on the ASX that they buying some more EFS assets (as well as some aussie asset too).  Looks like they probably had to take those to get the Atascosa county acreage in southern portion in EOG area.  5500 acres with some production and hedges too.  

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