Weekly report that's good to follow if you aren't already.

http://www.eia.gov/petroleum/weekly/

I just entered 24 3-way collars at 52-72-75. Everyone should probably take long positions now.

Midstream natural gas assets in North America are far and away the best long term play, especially from a shareholder perspective, in my opinion.

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Everyone should probably take long positions now.

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what makes you say this?

Just heard back and the market moved against me, so I didn't take the 52-72 collar. I'm going to go ahead and take the $75 call today and see what happens before storage reports next week.

I said to get long because that trade was supposed to pay if oil goes below $52. It also pays if it goes above $76.50 (including cost of $75 calls), but leaves exposure between $72 and $76.50. The market usually moves against me in the near term every time I take a position.

The movement on the 10 year is incredible

XOM at these levels is good entry for anybody wanting to start a longtern position

Call me crazy, folded most of bio-tech positions (long), to push into VENAX . As said earlier today, I like this whole sector more at $50+ oil than $100+ oil...

Currently evaluating a portfolio of PE-backed E&P senior debt. Most companies have shallow water GoM operations. There are not a lot of public operators in that specific area, curious if any of the oilmen here can offer any insight as to the economics for those wells - in very general terms. Currently offered at a 40% discount to face, I MAY be interested at 50%.

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Depends on the midstream asset. Natgas may be a different story than oil. While oil is taking it on the chin, natgas is steady and demand is increasing. Once Cove Point reverses itself to export LNG, you'll see an even bigger increase in demand.

I'd love to read what you guys think of natural gas

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Lots of natura gas info here.
http://texags.com/forums/57/topics/2466295

PM me GB and I can look at any recent trades.

Apache to Sell Stakes in LNG Plays

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Apache to Sell Stakes in LNG Plays

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This was in the works earlier this year.

Just sold Feb $62 calls. Now everyone should get long oil.

Anyone on this thread want to grab a drink sometime?

I noticed a trend that may or may not mean anything. The Price of WTI and Brent make daily overnight increases until folks in the USA go to work.

In the past couple of weeks...Outside of the USA work hours oil has made slight increases everyday ($.50 to $.90 cents). Once the USA work hours start the price almost immediately starts to drop.

It seems like a lot of the downward movement is happening while those of us in the States are awake and at work.

I have checked the price at 2am and at 5am and 7am...thinking, "Great, its making a move up!"

Then around 9am everyday it starts its drop...

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I noticed a trend that may or may not mean anything. The Price of WTI and Brent make daily overnight increases until folks in the USA go to work.

In the past couple of weeks...Outside of the USA work hours oil has made slight increases everyday ($.50 to $.90 cents). Once the USA work hours start the price almost immediately starts to drop.

It seems like a lot of the downward movement is happening while those of us in the States are awake and at work.

I have checked the price at 2am and at 5am and 7am...thinking, "Great, its making a move up!"

Then around 9am everyday it starts its drop...

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Because the speculators wake up and start punching buttons on their computer again.....

True. I guess the speculators that live in other parts of the world are "speculating" differently.

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Anyone on this thread want to grab a drink sometime?

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I read this thread and will have one with you at your ranch

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If the prices drop below 40 we can have a drink at the petroleum club and then join the rest of the patrons jumping off the building.

The 50 day is holding up, that break could cause big flush down

From a consumer point of view, reg unleaded gas in ABQ is $1.98/gal. It has dropped about 20/gal in the last week.

New Mexico has the cheapest gas in the US right now. I am very surprised.

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Anyone on this thread want to grab a drink sometime?

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I read this thread and will have one with you at your ranch

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If the prices drop below 40 we can have a drink at the petroleum club and then join the rest of the patrons jumping off the building.

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We might be having drink together outside the 7 eleven if this pace keeps up.

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Id prefer outside home depot, at least we might be able to pick up some work there.

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Good point third. Could be tuff to snag a job there with Obamas amnesty plan.

^

I had more of a King of the Hill feel. Lord knows what Hank Hill would say about Mr. Obama. Probably, "Peggy, that boy ain't right".

$56.75....

EOG still holding strong what a trooper

Been amazed at EOG strength too. Trading at same level before earnings when crude was $85/bbl....

But it is a largely unhedged producer (albeit with the best assets) so their valuation multiples have gotten more expensive with the decrease in crude prices.

Investors have been hiding in larger caps with good balance sheets, good quality positions like OXY, EOG, COP... But they are all trading well above historical norms, so I don't think they can sustain these levels unless crude rebounds quickly (looking less and less likely)

I opened shorts on COP and EOG today. Tight oil led, now the best in category are going to start regressing.

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Been amazed at EOG strength too. Trading at same level before earnings when crude was $85/bbl....

But it is a largely unhedged producer (albeit with the best assets) so their valuation multiples have gotten more expensive with the decrease in crude prices.

Investors have been hiding in larger caps with good balance sheets, good quality positions like OXY, EOG, COP... But they are all trading well above historical norms, so I don't think they can sustain these levels unless crude rebounds quickly (looking less and less likely)

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This begs the question: who are the smaller producers with the best assets and financials to survive a few years at these prices?

The smaller independents have been hammered more than anyone, so there's bound to be some steals there. I don't know enough about US plays to make the call, but surely some of you know who has the best acreage.

Look for producers with total leverage of less than 3.0x, lots of liquidity, and an ability to generate free cash flow by reining in CAPEX. There are several out there.

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Look for producers with total leverage of less than 3.0x, lots of liquidity, and an ability to generate free cash flow by reining in CAPEX. There are several out there.

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Any suggestions on where to start?