More From Ingrid Pan
Why oil takeaway capacity in the Bakken can affect earnings
The availability of takeaway capacity from the Bakken can affect producers’ earnings.
Introduction to the Permian Basin — Part 2: Geography of the Permian Basin
The Permian Basin is one of the US’s primary drivers of oil production growth. Market Realist provides an overview of this prolific hydrocarbon asset with a primer piece: “Introduction to the Permian Basin”.
Why the summer heat wave supports natural gas prices
A heat wave that has persisted in the US has helped to lift natural gas prices.
US oil rig counts continue to rally, reaching a year-to-date high
Last week, the Baker Hughes oil rig count increased from 1,423 to 1,425, reaching the highest level since 2014 began.
Why natural gas rigs aren’t likely to rise much through year-end
Natural gas rigs remain down since the beginning of the year, with no major catalyst for them to increase in the medium term.
Must-know effects of the Ukraine crisis on your oil investments
The immediate effect of the current crisis between Russia and Ukraine is that it has likely provided some support to oil prices and caused some volatility in oil prices.
Cold weather and bullish inventories boosted natural gas prices
Natural gas prices rose last week in response to a bullish inventory report and expected cold weather.
Why some MLPs are benefitting from increased propane exports
Significantly higher rates of propane exports have helped to boost propane prices—and the margins of some MLP names.
Why higher natural gas rig counts may be a positive signal
U.S. natural gas rigs remain elevated 10% since late June.
Why inventory figures buoyed crude oil prices
On February 5, the DOE reported an increase in crude oil inventories of 0.44 million barrels—much lower than analysts’ expectations of a build of 2.27 million barrels.
Must-know: Why oil rig counts have risen 2% in 2014 so far
U.S. land rig counts totaled 1,696 on February 21, 2014, compared to 1,692 the week prior. Over the medium term, rig counts have been relatively stable.
Why US oil rigs have been trending downward since mid-year
Oil rig counts decreased last week, down ~4% since June Last week, the Baker Hughes oil rig count decreased from 1,367 to 1,361. Oil rig counts have been on a slight downward trend since mid-year. Rigs drilling for oil peaked this year in June, at 1,413, but have since fallen about 4%. Though the drop […]
Why debt is now a less attractive financing source for master limited partnerships
Master limited partnerships rely highly on external capital to fund growth Master limited partnerships or MLPs are specially structured entities that must pay out most of the cash they generate to unitholders. So MLPs rely especially on external funding sources (as opposed to internally generated cash) to execute growth projects and acquisitions. Because of this […]
The reason behind the 6% increase in the US rig counts this year
The U.S. rig counts dropped last week, but are still up significantly year-to-date and have increased by 103, or 6%.
Why should investors pay attention to oil and gas rig counts?
Many parties in the energy industry and investing community monitor oil and gas rig counts as one measure of drilling activity.
Must-know: Why have oil prices remained buoyant lately?
Crude oil prices have remained buoyant lately, with last week’s rally mostly driven by higher-than-expected U.S. GDP growth.
Boardwalk Pipeline Partners: 2014 guidance and 2013 results
On February 10, 2014, Boardwalk Pipeline Partners (BWP) announced 4Q13 and FY2013 results. The company reported 4Q13 adjusted EBITDA of $129.6 million.
How will Chesapeake’s recent asset sales affect the company?
Chesapeake also is seeking strategic alternatives for its oilfield services business. The announcement of these divestitures is likely positive for Chesapeake in the long term.
Spread between WTI crude oil and Brent oil has closed in significantly since YE2012
The WTI-Brent spread remained relatively unchanged last week, but has closed in significantly since year-end 2012.
Must-know points of Devon Energy’s plan to develop the Eagle Ford
Devon plans to rapidly grow production in the Eagle Ford over the next few years.
Must-know: Why natural gas prices had another strong rally
Natural gas continued to climb on the week, as the markets expected cold weather to boost demand, a positive short-term and medium-term indicator.
Why names like Southwestern are poised to benefit this winter
Natural gas producers will see upside from the colder winter, as it has helped to boost natural gas prices.
Why a dip in natural gas liquids prices affects energy names
NGLs prices remain uptrend despite the falling last week, which is positive to producers.
Natural gas producers declining due to expected warm weather
Last week temperatures were colder than normal, however, natural gas fell steeply on the week despite this.
WTI-Brent crude oil spread moves wider on Libya disruptions
The spread between WTI crude and Brent crude moved wider on Libya supply disruptions.
Higher natural gas liquids prices help wet gas producers like LINE
NGL prices traded higher last week, helping wet gas producers. NGL prices are an important indicator to track in the energy space.
Must-know: Why oil traded flat on the latest inventory figures
Oil traded flat on the latest inventories data, with a large build in crude oil stocks but declines in gasoline and distillate stocks.
Why this week’s winter storms could help propane companies
Propane names such as AmeriGas and Suburban Propane could be helped by this week’s winter storms.
The Russia-Ukraine situation’s impact on energy: Key takeaways
More U.S. gas exports creates more demand for U.S. natural gas, which supports prices and incentivizes greater production. This is positive for upstream producers.
Why 2 similar grades of oil trade at different prices
The spread between WTI and Brent crudes is currently near $8 per barrel because a recent production surge in the U.S. has caused a buildup of crude oil inventories at Cushing, Oklahoma, where WTI is priced.
An essential guide to Exxon Mobil: XOM’s major areas of operation
Exxon Mobil has three major business segments: Upstream, Downstream, and Chemical. Upstream contributes the most to XOM’s earnings.
Before you invest in master limited partnerships, read about this risk (Part 1)
What risk should you know about that could significantly affect MLP valuation? Read on to find out.
Natural gas liquids prices rise, boosted by propane prices
The representative NGL barrel reached highs of up to ~$50 per barrel in early February, given the strength in propane prices due to a cold winter as well as natural gas prices that pushed ethane prices up.
Higher natural gas liquids prices: Key causes and beneficiaries
This week saw NGL prices trade up by 5%, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June, a positive medium-term indicator.
What higher natural gas liquids prices mean for the energy sector
Natural gas liquid prices recovered somewhat last week, likely off the back of higher crude oil prices.
Must-know: Why is Regency’s acquisition of PVR Energy important?
Gas prices may be low now, but long-term gas drilling is here to stay in North America Currently, natural gas prices are relatively depressed, and short-term natural gas drilling activity on the whole doesn’t appear to be rising (see Why natural gas rigs aren’t likely to rise much through year-end). However, Regency’s purchase of PVR […]
Lower natural gas prices last week positive for coal-to-gas switching
Last week, natural gas prices declined more than coal prices which is an incentive for power plants to use more natural gas as fuel relative to coal.
The spread between WTI and Brent oil narrows to ~$6 per barrel
The WTI-Brent spread narrowed to ~$6 per barrel last week and the prices between WTI and Brent have generally been moving closer over the past few months.
Popular ways for investors to play natural gas prices
For most investors, the most straightforward way to play natural gas prices is through commodity ETFs or investing in equities that produce natural gas.
Must-know: Frac spreads get boost from oil price spike
Fractionation spreads got a boost last week with rising crude oil prices.
The major factors for oilfield service names like Halliburton
Oilfield service (or OFS) companies provide services such as drilling and completing wells, evaluating oil and gas reserves, maintaining wells, and offering other related goods and services.
Must-know: Why natural gas prices fell 6% last week
This past week, natural gas prices decreased by $0.25 per MMBtu. Natural gas prices remain low in a long term perspective despite last week’s great slip.
Why did the WTI-Brent spread continue to narrow last week?
The WTI-Brent spread continued to narrow last week. The EIA recently revised its prediction for 2014′s average WTI-Brent spread.
Why oil prices continued a 2-week rally, driving energy stocks
Crude oil prices continued to rally, as a sharper-than-expected decrease in distillates helped to support prices. Oil prices have remained relatively high and stable.
Must-know: The oilfield services industry’s outlook in 2014
What have the Big Three oilfield service companies been saying about the outlook for 2014? The global economy is expected to continue to improve.
Must-know update: Why the US oil rigs are up over 10% year-to-date
US oil rigs drilling are up over 10% year-to-date, supported by oil prices that have remained relatively stable around the $100 per barrel mark.
Natural gas liquids prices fall, hurting wet gas producers
Natural gas liquids prices fell on the week but remain up significantly since lows in June.
Why continuous cold winter helps propane distributors like FGP
Propane distributors like FGP will benefit from the season’s cold weather so far.
Why natural gas gathering and processing are important for MLPs
Natural gas gathering and processing is a significant part of the operations of many midstream master limited partnerships.
Why you might not want to invest directly in commodity futures
Futures contracts are the most direct method of investing in oil and natural gas price movements, but may not be appropriate for individual investors.
Rates inched up, but debt remains cheap for most MLP names providing cash for growth
Corporate debt rates for MLPs increased slightly over the past two weeks, but from a long-term perspective debt funding still remains extremely cheap.
Natural gas prices plummet to lowest point since February
Natural gas prices closed down sharply given a larger than expected inventory draw and milder weather.
Must-know: The essentials of Hess Corporation’s Bakken activity
Hess Corp. is one of the largest companies to operate in the Bakken, and it has stated that the area will be the primary driver of its production growth for 2013–2017.
WTI-Brent spread fell below $8.00/barrel, the 1st time since October
The spread between WTI and Brent crudes closed at $7.51 per barrel on February 21, compared to the previous week’s spread of $8.81 per barrel.
Natural gas drilling activity likely to remain muted
Natural gas targeted drilling in the US is likely to remain muted given the relatively low prices.
Low natural gas liquids prices cut into wet gas producer revenues
Natural gas liquids traded down on the week, though they remain up significantly since mid-2013 lows.
Natural gas rig counts see largest weekly increase since September
Baker Hughes, an oilfield services company, reported that rigs targeting natural gas rose last week, from 335 to 345 for the week ended March 7, 2014
Crude inventories increased, but Middle East turmoil supports prices
U.S. crude oil inventories increased more than expected, but oil prices traded up on news of escalating action in Syria.
Why analysts forecast an $11-per-barrel WTI-Brent oil spread
WTI-Brent spread traded slightly narrower last week. WTI had been trading as low as $23 per barrel under Brent in February of 2013. Over the course of the year, the spread narrowed due to several factors.
Large oil inventory draw supportive of oil prices, WTI breaks $100
Market participants watch the change in the amount of crude inventories to gauge supply and demand dynamics, with large inventory builds representing weak demand/strong supply and large inventory draws representing strong demand/weak supply, generally speaking. Last week, crude inventories decreased by 10.35 million barrels compared to estimates of a draw of 2.25 million barrels meaning […]
Higher propane prices help frac spreads and natural gas processors
Frac spreads traded up slightly last week and have been relatively range-bound over the past several months.
Why the WTI-Brent oil spread traded below $4 per barrel
Last week’s narrowing in the WTI-Brent spread might have been partly due to the rise in WTI crude oil prices on positive U.S. economic indicators and a drop in U.S. gasoline inventories.
Why natural gas liquids prices have trended up for 7 months
This week saw NGL prices trade up, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June—a positive medium-term indicator.
Is preferred equity a trend for master limited partnerships?
Recently, two master limited partnerships issued preferred equity, which is a relatively rare avenue of financing for MLPs.
Milder temps last week put downward pressure on nat gas demand
Last week’s weather was slightly milder than normal, which is a negative for natural gas prices as less of the commodity is needed to generate power for cooling devices.
Large build in oil inventories bearish signal as a decrease had been predicted
Last week, oil inventories increased significantly while experts had predicted a decrease. This resulted in a bearish signal for oil prices, though the commodity traded up on the day on separate news.
Why money-hungry energy companies are worse off now
Rates on high yield bonds continued to back up last week, and the yield on the BofAML HY Bond Index is now at its highest point in 2013. This is a negative catalyst for non-investment grade companies with debt funding needs.
Why another week of warm weather helped natural gas prices
Hotter-than-normal weather helped natural gas demand and natural gas prices. This resulted in a positive short-term catalyst.
Why natural gas prices dropped nearly 7% after a strong rally
On February 27, 2014, the EIA reported that natural gas inventories decreased by 95 bcf (billions of cubic feet) for the week ended February 21, bringing current inventories to 1,348 bcf.
Why oil prices finished up despite a bearish inventory report
The DOE reported a drop of 5.18 million barrels in gasoline inventories—larger than analysts’ expectation of a 0.94 million barrel decline.
Why WTI crude oil is trading ~$15 per barrel below Brent
The WTI-Brent spread moved wilder last week, but the market expects it to close in soon. Investors may want to monitor the spread.
Natural gas liquids prices dipped last week but are up medium-term
NGL prices traded down by 4% on the week, as most of the composition experienced a drop in price. However, the representative NGL barrel remains up over 50% since lows in June.
Why US rig counts have climbed by nearly 40 since the end of 3Q13
Despite expectations that rig counts would decline into year-end, total U.S. rig counts have been on the rise.
Must-know: Why higher propane prices could hurt some MLPs
Propane prices increased last week, which could cut into the sales volumes of distributors such as AmeriGas and Ferrellgas.
Why natural gas prices are up and oil prices are down
Natural gas prices have rallied over the past few months while crude prices have dropped from recent highs.
Must-know: Why the WTI-Brent oil spread might narrow in 2014
WTI-Brent spread traded narrower last week, which is positive for domestic energy companies. Investors may want to monitor the spread.
Why higher natural gas liquids prices help natural gas processors
Fractionation spreads increased on the back of higher natural gas liquids prices, a positive for natural gas processor master limited partnerships.
Things to look out for from Twitter over the next few quarters
The departure of Twitter’s COO signals that the company is taking active steps to drive growth, and investors should be looking at other announcements from TWTR over its growth as one of the primary drivers of stock price.
Higher oil prices are a potential double whammy for propane sales
Propane distributors such as Amerigas Partners (APU), Ferrellgas (FGP), and Suburban Propane (SPH) sell propane and related equipment to a variety of end markets. Find out what trends could hurt propane names this winter.
Why these key areas have driven increases in oil rig counts
Last week, the Baker Hughes oil rig count dropped by three, from 1,531 to 1,528. Since the beginning of 2014, oil rig counts have risen by ~11% (+150).
Wet gas producers benefit from higher natural gas liquids prices
Natural gas liquids prices increased last week and remain up considerably since mid-year, helping companies with significant wet gas production.
Must-know: Why the WTI discount to Brent oil closed wider
The spread between WTI and Brent Crude closed at $6.61 per barrel on May 30, compared to the spread of $6.11 per barrel for the week ending May 23, 2014.
Why this winter has been positive for propane distributor MLPs
Cold winter weather is one of the major drivers of propane distributors’ earnings, as the fuel is used for home heating in many areas in the U.S.
Atlas Pipeline Partners taps preferred equity for over $100 million
Earlier in March, Atlas Pipeline Partners (APL)—a gathering and processing master limited partnership (or MLP)—announced an offering of preferred equity.
Must know: How inventories data can affect the market
The latest reported crude and distillate inventory figures both gave negative signals to crude prices.
Why WTI crude oil prices are down over 15% in 3 months
WTI crude oil prices continued to slide as U.S. crude inventories continued to grow, with domestic production surging.
Why have natural gas rig counts been range-bound despite forecasts?
The natural gas rig count has been relatively range-bound over the past several weeks despite Baker Hughes’ expectation that the figure would decline going into 4Q13.
Natural gas prices took another dive with a warm weather outlook
Natural gas prices plummeted last week, as forecasts showed mild weather in early November. This is a negative for gas demand.
Must-know: WTI-Brent oil spread hits widest point since February
The WTI-Brent spread continues to move wider as Libya experiences unrest, dampening its oil production, and U.S. production keeps surging.
Why disappointing data from China dragged down markets and oil stocks
Weak manufacturing data came out of China, putting downward pressure on oil prices.
Natural gas rig counts slid again, reflecting producer sentiment
Natural rig counts dropped again last week, and are down 14% year to date.
Why did natural gas prices take a tumble over the week?
Natural gas prices fell on a bearish inventory report, closing at $4.53 per MMBtu for the week ended May 9, 2014—down from the $4.67 per MMBtu close the prior week.
How EPD plans to fund its multi-billion-dollar growth plans
This series discusses a few key financial points that Enterprise Products Partners outlined during its recent presentation.
Nat gas rigs almost flat for fifth week in a row – a sign that counts have bottomed out?
Natural gas rigs drilling were almost flat again last week, the fifth week in a row that rigs drilling were generally flat.
Must-know: Why wintry weather helps boost natural gas prices
Natural gas prices rose on forecasts of severe winter storms, as many households use natural gas for home heating.
More midstream oil and gas options in the Permian Basin have kept spreads tight
Producers in the Permian had suffered in the past when takeaway capacity was not sufficient for the growth of West Texas oi production. However, at present it seems that these issues have been resolved.
Natural gas should gain market share from coal for power generation
Natural gas gained significant market share against coal in 2012 for usage in power generation. Long-term, the EIA expects natural gas to gain market share.
Why ethane stopped trading like crude and started trading like nat gas
Ethane traditionally had tracked crude oil prices, but has recently sunk to price lows and has started to mirror movements in natural gas. Part I of III.
Continued Bakken production growth a boon to midstream names in the area
North Dakota oil production continued its trend of rapid growth in December 2012, resulting in a positive long-term indicator for midstream names with assets in the area.
Natural rig counts rose, breaking out of a weeks-long flat trend
Natural gas rigs rose last week, after trending flat for eight weeks.