01
Jun
Wrap – Week Ended 05/31/24
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The portfolio was up 2.6% on the week last week and is up 17.5% on the year, exceeding our benchmarks as noted in the first two sections of the wrap table below.
Free Stuff Last Week:
Holdings Watch:
- We added to our position in CHRD at $177.50 in the wake of the completion of their acquisition of ERF and after the prior week's $176 add. We hold CHRD as the 5th largest position in the portfolio with an average cost of $156.48 excluding dividends.
- The trading blotter is updated.
- The portfolio positions page will be updated over the weekend.
Notables from the Wrap
- Oil:
- The weekly EIA oil inventory report was neutral in our view. Please see the slide show here.
- EIA's view of Lower 48 oil production was flat at 12.7 mm bopd for a twelth week.
- OPEC+ meets virutally on June 2. We expect a roll forward of 3 to 6 months on the voluntary cuts and 6 months on the official production levels. Leadership needs to rein in Iraq.
- The weekly EIA oil inventory report was neutral in our view. Please see the slide show here.
- Rigs:
- The horizontal rig count (both oil and gas rigs) reached a new 2024 and cycle low this week
- Frac:
- The active frac spread count eased for a second week and is running flat to year ago levels.
- Natural Gas:
- Dry gas volumes are starting to creep back up towards 100 Bcfgpd according to multiple scrape based data sources. This was expected as prices prompt some players to decurtail.
- Our EOS for 2024 remains < 4 Tcf.
- Please see the Natural Gas Weekly Slide Show here.
Questions and comments under The Wrap will be addressed in the Subscriber Mailbag section of the Monday post.
Questions about the site may be sent to zman@zmansenergybrain.com
Thanks and have a good weekend,
Z
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June 1st, 2024 at 9:46 amOPEC+
– short meeting, already done.
– cuts extended through 3Q25.
– some players get new production baselines.
– next meeting Dec 1 2024
https://www.opec.org/opec_web/en/press_room/7337.htm
June 2nd, 2024 at 8:02 amCountry details:
https://www.opec.org/opec_web/static_files_project/media/downloads/Production%20table%20-%2037th%20ONOMM.pdf
June 2nd, 2024 at 8:02 amProduction Watch: Production on Friday was 100.3 Bcfgpd according to BNEF.
LNG Watch: LNG exports were 13.6 Bcfgpd on Friday according to BNEF.
June 2nd, 2024 at 8:18 amThe combined 2.2 mm bopd of voluntary cuts were extended through 3Q24.
June 2nd, 2024 at 8:55 amPortfolio positions have been updated for month end.
https://zmansenergybrain.com/subscriber-data/holdings-wiki/
June 2nd, 2024 at 9:33 am