But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Must-know: Valero’s recent market performance
Profitability in the refining industry is determined by the revenues earned by selling finished products minus the cost of crude inputs—until recently, refiners were buying lower priced crudes to produce refined product, which sold at better prices internationally.
The implications of the US energy boom, however, go far beyond the energy sector.
The proliferation of shale gas and unconventional oil production techniques are leading to a surge in domestic energy production that is likely to continue in coming years.
According to the projections of U.S. Energy Information Administration (EIA), shale gas production is expected to continue to grow in the coming years.
On Thursday, May 8, 2014, the EIA reported that natural gas inventories increased by 74 bcf (billions of cubic feet) for the week ended May 2, bringing current inventories to 1,055 bcf.
On May 7, the DOE reported crude and refined product inventory data for the week ended May 2. Crude oil inventories decreased by 1.78 million barrels, compared to analysts’ expectation of a 1.15 million barrel increase.
Looking ahead, SRC said it has seen the early signs of a recovery in the resource sector, and expects it to continue to be a challenging environment for many commodities-focused businesses throughout 2014 and into 2015.
Sprott Inc.’s founder, Eric Sprott, is well known among financial circles for his successes in the investment sector. He is also known among Aboriginal circles for his support of First Nations peoples.
Sprott Resource Corp., SRC (SCPZF), employs a disciplined approach when looking for investments. You can take this with a grain of salt but the company lists the fact that they have done due diligence on over 1,000 deals.
Our experience with Steve Yuzpe has been an extremely favorable one and we have confidence in his abilities to lead the company going forward.
While Sprott’s share price has been bottoming out due to the dividend cut, Long Run Exploration (LRE.TO), Sprott’s largest holding, has seen its share price increase over 30%.
SRC passes our 3-M’s test (management, moat, and mis-pricing). Our analysis tells us that the company is worth north of CAD$3.50 based on its NAV.
NGL prices closed slightly lower at $39.30 per barrel on April 25, compared to $39.84 per barrel for the week ended April 17.
Natural gas prices closed at $4.65 per MMBtu for the week ended April 25, 2014—2% lower than the $4.74 per MMBtu close the prior week.
On April 25, the price of the WTI crude front month contract closed at $100.60 per barrel, 3% lower than the $104.30 per barrel close the week prior.
The spread between WTI and Brent crudes closed at $8.89 per barrel on April 25, compared to the spread of $6.07 per barrel for the week ended April 11, 2014.
The composite NGL prices traded slightly higher on the week.
Natural gas prices closed at $4.74 per MMBtu for the week ended April 17, 2014—4% higher than the $4.62 per MMBtu close we saw the prior Friday.
Since April 18 was Good Friday and NYMEX closed on that day, the energy prices of the week will be the closing prices on Thursday, April 17.
The spread between WTI and Brent crudes closed at $6.07 per barrel on April 17, compared to the spread of $3.80 per barrel for the week ended April 11, 2014.