06
May
Wrap – Week Ended 05/05/17
.
.
The ZLT ended last week up 1.5% and is down 12.7% year to date.
.
The XOP ended last week down 0.3% and is down 15.9% on the year.
.
The coming week's energy earnings calendar will be released on Sunday.
.
.
06
May
Z re 108 yesterday what is tue correlation of production to market cap? Would you expect it to approach 1 to 1? Trying to translate your comments to thoughts on share price over next 3-5 years. Thx
May 6th, 2017 at 4:06 pmre 1 – no, there's no way of knowing that, there's not a strict correlation as other things like oil prices will change. Also, with higher volumes and price held flat, one would expect higher margins (unit costs come down for LOE and G&A in most cases). So you have great EBITDA growth, assuming prices are held flat than production growth. But you are also getting into the realm of larger volumes and a bit slower growth each year (just because of size). So that impacts the range of TEV/EBITDA multiples that the market would likely pay for. So maybe no long 12x but 10x. So looking out 5 years at production growth assuming a stable oil price and that kind of growth you have a higher margin per barrel and likely a lower forward multiple paid for. That yields, on that growth rate, a substantially higher stock price, even with the multiple naturally easing back a bit.
May 6th, 2017 at 4:14 pmREXX announced a 1 for 10 reverse split, effective after the close this Friday.
May 7th, 2017 at 9:06 amThose reverse splits don't seem to turn out well. Maybe this time is different.
May 7th, 2017 at 10:56 amTrue
May 7th, 2017 at 1:20 pmTesting $47 early evening.
http://www.cx-portal.com/wti/oil_en.html
May 7th, 2017 at 7:45 pmEnergy earnings calendar week 4 has been added to the Calendar tab
http://zmansenergybrain.com/subscriber-data/calendar/
May 7th, 2017 at 7:50 pm