Wrap – Week Ended 7/22/22

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The ZLT was up 8.4% on the week last week exceeding energy benchmarks as noted in the table below due to outperformance in a number of key names in upstream and oil service and bounces for some of our wind and solar segment tied names.

Free Stuff Last Week:

• HAL preview for Seeking Alpha (live notes were included under the same day post)

We did pre call/post report notes for BKR (another sloppy quarter), SLB (strong stuff), and TSLA (solid and improving) under the subscriber posts during the rest of the week.

Holdings Watch:

• We added to several names last week and added a new Trading Only position at week's end.
• The Blotter Is Updated.

We're traveling this weekend so I'll brief on the Wrap table below:

1. Active frac spreads recovered after three weeks of holiday induced dip to hit 290, tying the pandemic period high. We expect modest (very modest) further gains this summer.   Capacity remains tight and HAL spoke extensively to an inability on the part of industry as well as an unwillingness to add horsepower near and medium term.
2. Note the Brent to WTI spread.  That's the biggest one this year. We have been expect higher U.S. crude exports and still do.
3. Natural gas is up on heat in the U.S. and fear over NS 1's ultimate utilization this summer and fall.  In the U.S. we're about to get the smallest set of injections so far this year and we have not altered our view of EOS since our initial read which was pre Freeport with a mid point at 3.425 Tcf.

Questions and comments under the Wrap will be addressed in the Monday post.

Have a good rest of the weekend.   At this point we are four calls down and 66 to go for the 2Q22 reporting season (owned or names of interest).The next two weeks are going to be extremely busy,  The calendar is updated.  Come take a test drive.   See the Membership Options link at left for details. 

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