22
Feb
Wrap – Week Ended 2/21/20
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Second week of gains for oil and natural gas this year. The ZLT was slightly up on the week helped by the renewable component of the portfolio.
Free pieces last week:
- MGY - 4Q19 Miss, Same Game Plan, Highlights Success at Giddings
- COG - 4Q19 - Strong Volumes, Reiterates Plan, Free Cash Flowing at $2, Highlights Success at Upper Marcellus
Post's Last Week
Additional Food For Thought on COG
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Questions and comments under The Wrap will be addressed in the Monday post.
The Blotter is updated.
Have a good weekend.
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Platts reports FERC ends consideration of changing te oil pipeline pricing system….and will stay with current methodology, which allows for annual creases . Good for the Midstream oil pipelines ….not so good for shippers, who wanted a new methodology.
February 22nd, 2020 at 12:55 pmre 1 – thanks.
General thoughts.
Transportation pricing, for our names has been relatively stable in recent years. In some places tariffs have come in (Permian recently).
Unlikely this sparks disappointment in the upstream space as investors are not looking for improvement on this front and it’s a small cost component. Oil marketing guys at the upstreams may be disappointed but unlikely an analyst is going to make note of it in a meaningful way at the EBITDA/BOE line.
February 22nd, 2020 at 1:55 pmWhen coronavirus gets here in more force, how would you expect it to affect something like NG prices? Would demand be crippled? Trying to mentally wrap my mind around that
February 22nd, 2020 at 10:48 pmre 3 – hey, good question, will drop comments in Monday post.
February 23rd, 2020 at 12:26 pmTomorrow’s post will be open to the public.
From tomorrow’s post:
EIA Drilling Productivity Report: Reversal at hand. March gas expected to be down 172 MM/d from February. A few months ago EIA had shale gas production rising nearly 1 Bcfgpd monthly. Permian is still growing along with Haynesville but this is offset by declines from the Anadarko and Appalachian (Marcellus) basins.
February 23rd, 2020 at 1:07 pmRe 3
February 23rd, 2020 at 3:22 pmGold is telling us how serious the problem is, IMO.
Corona Monday
Dow down 343. Trying to see how best not to blow up
I’m short DGAZ. Worried
February 23rd, 2020 at 8:18 pmChina has been big buyers of gold driv Ng the cor Na rocket ship tuere the last several weeks.
On one hand you could say, if you believe the data, there’s been 2,500 feats in a country with over a billion people in the last 60 days. Sad but not catastrophic for markets but the panic when it gets here may be significant. It’s just a matter of time one would think and then just to what extent
I read car sales in China in January were down 95% yoy. Looking for the link
February 23rd, 2020 at 8:29 pmSorry. Driving the corona rocket ship there*
February 23rd, 2020 at 8:30 pmFound it
Car sales down 92% in China due to corona virus
https://www.cnbc.com/2020/02/21/chinas-passenger-car-sales-tumble-92percent-in-early-february-due-to-coronavirus.html
February 23rd, 2020 at 8:32 pm[…] Baylor on Wrap – Week Ended 2/21/20 […]
February 24th, 2020 at 5:05 am