Wrap – Week Ended 05/27/22


Our main portfolio, the ZLT, was up 19% on the week last week. 

We're on vacation this weekend so The Wrap comments will be light.  In short:

  • Very strong action out of traditional energy groups. Several of our names hit multi-year and in one case all time highs. We will be walking through valuations vs our upside targets next week in the upstream space and oil service spaces. Renewables also played a bit of catch up during the week (wind, solar, and EV tied names).
  • The EIA oil inventory weekly was fairly neutral with "just ok" headline numbers but some strong internals including the best refiner throughput level of 2022 and an almost all time record for U.S. oil exports (again, if you release it from the SPR it will get largely exported).  Brent was briefly below WTI but that corrected itself and from a numbers standpoint we're good to go for more and bigger export readings this summer.
  • Cracks remain very strong with the basic 3-2-1 near $50.
  • The natural gas storage build came in lower than we expected and this week's math points to a smaller injection, maybe below +75 Bcf next week (comps are +100 Bcf for both the year ago week and the 5 year average).
  • Non commercial (speculator) natural gas positions remain exceedingly short.

Free Stuff Last Week:

Holdings Watch:

  • We added to our position in one small cap frac player multiple times.
  • We added to our position in one solar segment name.
  • Earlier this month we added to our core oily and gassy E&P players, oil service, as well as LNG tied names and solar segment names.
  • The Blotter is updated.

If you have questions about the site please contact zmanalpha@gmail.com or zman@zmansenergybrain.com

Comments and questions below The Wrap will be addressed in the Monday Tuesday post.

If you feel the need to lend a hand in the wake of recent events the Red Cross is in need. 

Have a good, peaceful Memorial Day weekend,




5 Responses to “Wrap – Week Ended 05/27/22”

  1. 1
    Zorgnak Says:

    Broad Market
    S&P Finished the week back in value for the year, for now. Bounce testing major supply.


  2. 2
    Zorgnak Says:

    Crude Oil Weekly trend continues without any sign of turning over.
    Daily Testing March highs at 115. Demand volume trending in multiple time frames.

  3. 3
    zman Says:

    Weather Watch:

    Last week:  Cooling Degree Days (CDDs) came in at 27 vs 29 normal, 28 forecast, and 39 in the prior week.

    This week’s forecast:  This week, CPC predicts CDDs will vault to 54 vs 36 normal.

  4. 4
    zman Says:

    WTI > $117

    Russia Watch:  EU agrees to Russian oil embargo covering 2/3 of imports from Russia. 

  5. 5
    Anonymous Says:

    Going through the charts of the ZLT stocks tonight…Looks like another good week ahead…
    NEX is just one of many that are looking strong and not done yet…
    NEX Daily

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