Laredo Petroleum Inc
Range Resources: A Look at Its Institutional Holdings
Range Resources (RRC) reported adjusted EPS of -$0.07 in the third quarter. Let’s talk about institutional investor activity in RRC in the quarter.
Upstream Stocks Outperformed the Energy Space
In the week ending March 22, upstream stock Denbury Resources (DNR) rose the most among the energy stocks under review in this series.
The Top Five Losses in the Energy Space Last Week
Between January 11 and January 18, upstream stock Laredo Petroleum (LPI) fell the most among our set of selected energy stocks.
Laredo Petroleum: Top Underperformer in the Upstream Space
On January 11–18, Laredo Petroleum fell the most on our list of upstream energy stocks from XOP.
Weakest Upstream Stocks in the Week Ending October 5
Ring Energy (REI) was the weakest upstream stock in the week ending October 5. Ring Energy fell 17.4% last week.
Weakest Upstream Stocks in the Week Ending September 28
Southwestern Energy (SWN) was the weakest upstream stock in the week ending September 28. Southwestern Energy fell 10.8% last week.
Why Laredo Petroleum Is Surging Today
Laredo Petroleum (LPI) stock is up more than 9% on strong volumes. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is up ~1.5%.
Analyzing Wall Street’s Targets for HK, XEC, JAG, LPI, and COG
To conclude our series, we’ll discuss analysts’ recommendations for this year’s weakest upstream stocks.
Is Jagged Peak Energy’s Valuation Justified?
This year, Jagged Peak Energy (JAG), has been the third-weakest US upstream stock.
President Trump Impacts Iran and Crude Oil Futures
On May 8, President Trump said that the US is exiting the Iranian nuclear deal. He plans to impose new sanctions on Iran.
Comparing Stock Performance: LPI, EQT, FANG, SRCI, and CXO
Stock performance In this part, we’ll compare Laredo Petroleum’s (LPI), EQT’s (EQT), Diamondback Energy’s (FANG), SRC Energy’s (SRCI), and Concho Resources’ (CXO) stock performance. As we saw in the previous part, these stocks reported the widest net profit margins in fiscal 2017. Outliers and underperformers Diamondback Energy (FANG) outperformed its peers, rising 27% YoY (year-over-year). Meanwhile, […]
These Upstream Companies Had the Widest Net Margins in 2017
Top five upstream companies based on net margins Let’s now look at the five upstream companies with the widest net profit margins in fiscal 2017. Profit margins are helpful in gauging a company’s profitability and operational efficiency. Profit margin growth shows that a company is increasing its operational efficiency and making more money on each unit […]
Why OPEC’s Crude Oil Production Rose in January
A Reuters survey showed that OPEC’s crude oil production increased by 100,000 bpd (barrels per day) to 32.4 MMbpd (million barrels per day) in January 2018.
Traders Could Start Booking a Profit in Crude Oil Futures
On January 16, 2018, Goldman Sachs said that crude oil prices could exceed its forecast in the coming months.
Implied Volatility of Top 5 Return on Equity Upstream Stocks
Carrizo Oil & Gas (CRZO) has the highest implied volatility among its peers, while Devon Energy (DVN) has the lowest implied volatility.
What Made Laredo Petroleum’s Return on Equity Rise in 2017?
Laredo Petroleum’s (LPI) TTM (trailing 12-month) ROE (return on equity) in 3Q17 was 45.7%.
The Top 5 Upstream Companies Based on Return on Equity
The company with the highest trailing 12-month ROE (return on equity) as of 3Q17 is Carrizo Oil & Gas (CRZO) with an ROE of 52.1%.
US Crude Oil Futures and the S&P 500 Diverged Last Week
January US crude oil (USL) (DWT) futures contracts rose 0.5% to $57.3 per barrel on December 15, 2017.
FOMC’s Meeting Could Impact the Dollar and Oil Prices
The FOMC’s two-day meeting will be held on December 12–13, 2017. The Fed is expected to raise the US interest rate during this meeting.
US Crude Oil Inventories Have Fallen 16% from Their Peak
US crude oil inventories fell by 5.6 MMbbls (million barrels) or 1.2% to 448.1 MMbbls on November 24–December 1, 2017, according to the EIA.
Crude Oil Prices Are Positive before OPEC’s Meeting
US crude oil futures for January delivery rose 0.3% to $57.47 per barrel at 1:10 AM EST on November 30, 2017. Prices rose ahead of OPEC’s meeting.
Upstream Losers: JONE, TELL, KOS, LPI, and ERF
In the week starting October 2, 2017, Jones Energy (JONE) has fallen ~9.0%, from $1.92 to $1.74. It has fallen every day so far this week.
Analyzing Libya’s Crude Oil Production
A Reuters survey estimates that Libya’s crude oil production fell by ~20,000 bpd (barrels per day) to 670,000 bpd in February 2017—compared to January 2017.
Libya’s Crude Oil Production Hit a 3-Year High
Libya’s National Oil Corporation reported that the country’s crude oil production rose to ~700,000 bpd in January—the highest level in the last three years.
Libya’s Crude Oil Production Reached a 3-Year High
Libya’s National Oil Corporation reported that the country’s crude oil production rose by 300,000 bpd between September 2016 and January 2017.
Oil Prices, World Oil Consumption, and Global Economic Growth
Steady world oil consumption would support oil prices in 2017. The change in world consumption is expected to average 1.6% in 2017.
Non-OPEC Crude Oil Production: Will It Impact Oil Prices in 2017?
Figures from the EIA suggest that non-OPEC crude oil production rose by 350,805 bpd to 44.6 MMbpd in September 2016—compared to the previous month.
Libya’s Crude Oil Production Could Impact Crude Oil Prices
Libya produced ~1.8 MMbpd of crude in 2007. Civil war and militant attacks on its oil infrastructure caused the fall in Libya’s crude oil production.
How Does Non-OPEC Crude Oil Production Impact Crude Oil Prices?
The latest figures from the EIA suggest that non-OPEC crude oil production fell 386,600 bpd in August 2016 compared to the previous month.
Why US On-Highway Diesel Fuel Prices Fell for 4th Straight Week
The EIA reported that US on-highway diesel fuel prices fell 0.37% at $2.41 per gallon on July 11, 2016, compared to the previous week. Prices fell for the fourth straight week.
US On-Highway Diesel Fuel Prices Fell Slightly
The EIA reported that US on-highway diesel fuel prices fell slightly by 0.12% at $2.42 per gallon on July 4, 2016—compared to the previous week.
US Monthly Crude Oil Production: Lowest since September 2014
The EIA reported that monthly US crude oil production fell by 222,000 barrels per day to 8.9 MMbpd in April 2016—compared to the previous month.
How Are US On-Highway Diesel Fuel Prices Trading?
The EIA estimates that diesel fuel prices will average $2.34 per gallon in 2016 and $2.69 per gallon in 2017.
US On-Highway Diesel Fuel Prices Hit Fresh 2016 Highs
The EIA reported that US on-highway diesel fuel prices rose by 0.8% week-over-week and closed at $2.40 per gallon on June 6, 2016.
Why Didd US Crude Oil Inventories Fall?
The EIA stated that the US crude oil refinery demand rose by 211,000 bpd to 16.4 MMbpd for the week ending June 3, 2016—compared to the previous week.
Can Energen’s Stock Price Continue Its Post-1Q16 Earnings Rally?
Energen (EGN) announced its 1Q16 earnings on May 5, 2016. Following its earnings release, a contrarian reaction occurred in which better-than-expected earnings pushed Energen’s stock price down by ~4% in two sessions.
Can WPX Energy Stock Keep Rallying after Its 1Q16 Earnings?
Since January 2016, WPX Energy stock has been in a new uptrend. It’s clearly making a pattern of higher highs and higher lows.
Can Marathon Oil’s Stock Maintain Its Rally after Its 1Q16 Earnings?
Marathon Oil (MRO) announced its 1Q16 earnings on May 4, 2016, after the Market closed. On the day of its earnings release, Marathon Oil’s stock price decreased by ~4.9% to close at $12.17.
Can SM Energy’s Stock Continue to Rally after Its 1Q16 Earnings?
SM Energy (SM) announced its 1Q16 earnings on May 3, 2016, after the Market closed. On the day of its earnings release, SM Energy’s stock price fell by 3.68% to close at $29.06 per share.
US Crude Oil Production Sees a Significant Fall: What’s Next?
The EIA reported that US crude oil production fell by 113,000 barrels per day to 8.8 MMbpd (million barrels per day) for the week ending April 29, 2016.
Can Devon Energy Continue Rallying after Its 1Q16 Earnings?
Devon Energy announced its 1Q16 earnings on May 3, 2016, after the market closed. On the day, DVN’s stock price fell by 5.2% to close at $32.75.
Analyzing Volatility in Crude Oil Prices: What Does It Mean?
Crude oil prices implied that volatility increased after the release of the US crude oil inventory report during the first two months of 2016.
Why Did Brent Crude Oil Prices Skyrocket to 4-Month High?
Brent crude oil futures rose by 2.1% to $42.83 per barrel and tested their four-month high. Prices rallied ahead of the oil producer meeting in Doha.
Understanding the Low Level of US Crude Oil Production
The EIA reported that the weekly US crude production fell by 10,000 bpd to ~9.1 MMbpd in the week ending March 11—the lowest level since November 14, 2014.
Upstream Companies’ Leverage: Why It’s a Concern
Many of the smaller upstream companies (XOP) have become highly leveraged. This increases the possibility of a default or bankruptcy.
How Global Gross Domestic Product Affects Crude Oil Prices
The IMF (International Monetary Fund) forecasts that the world economy will grow by 3.4% in 2016 and 3.6% in 2017.
Slowing US Crude Oil Rig Count Could Lift the Oil Market’s Pessimism
BHI released its weekly crude oil rig count report on February 19. The US crude oil rig count fell by 26 rigs to 413 rigs for the week ending February 19, 2016.
Why Crude Oil Prices Fell despite the OPEC and Non-OPEC Deal
March WTI (West Texas Intermediate) crude oil futures contracts trading in NYMEX fell by 1.4% and settled at $29 per barrel on February 16, 2016.
OPEC’s Unplanned Supply Disruption Impacts Oil Prices
The fall in supply disruptions from OPEC member nations will add to the global oil market glut. This would extend the bear market and negatively impact oil prices.
Crude Oil Prices Rose for the First Time in the Past Week
WTI crude oil futures contracts for March delivery rose by 12.3% on February 12. Brent crude oil prices rose by 11% and settled at $33.36 per barrel on the same day.
Crude Oil Prices Follow a Long-Term Trend, Could Hit $25 per Barrel
Crude oil prices have fallen almost 29% in 2016. Prices have fallen to 12-year lows. They’re following a long-term bearish trend.
US Crude Oil Refinery Demand Influenced Crude Oil Prices
The EIA released its “This Week in Petroleum” report on February 10. The US crude oil refinery demand fell by 105,000 bpd for the week ending February 5, 2016.
US Crude Oil Production Could Become the Biggest Bear in 2016
Record US crude oil production has pressured crude oil prices while the record oil production of OPEC and Saudi Arabia has dragged prices to historic lows.
Crude Oil Prices Resume the Long-Term Trend
Crude oil prices fell for the second consecutive day. Prices fell by 11% in the last two days after rising by 25% since January 20, 2016.
Saudi Arabia’s Crude Oil Production: Key for the Global Oil Market
Preliminary estimates suggest that Saudi Arabia produced more than 10 MMbpd of crude oil in January 2016. Its production peaked at 10.6 MMbpd in June 2015.
OPEC Unable to Shut Down US Shale Oil Producers
The EIA reported that US oil production fell by 17,000 bpd (barrels per day) to 9.2 MMbpd (million barrels per day) for the week ending November 20, 2015.
Why Did the Permian Basin Lead the Oil Rig Count Fall?
As of November 25, 2015, there were 555 working oil rigs in the US. The Permian Basin accounts for 214 of these rigs—more than any other region.
Comparing Capex Growth for 4 US Upstream Companies
RSP Permian recorded 4.6% fiscal 3Q15 capital expenditure growth. It spent $403 million on capex in fiscal 3Q15 compared to $385 million in fiscal 3Q14.
Why Did RSP Permian’s Revenues Rise in Fiscal 3Q15?
RSP Permian registered the highest revenue rise in fiscal 3Q15. It recorded a 47% rise compared to the previous year’s quarter.
Permian Shale Oil Production Up in October: Who Benefited?
The EIA estimates that the Permian Basin’s crude oil production amounted to ~1.99 MMbpd in October. This is a 14% rise over production in October 2014.
How WTI Crude Oil Prices Reacted to Oil Rig Fall on November 6
On November 6, after six US crude oil rigs went off-line, WTI crude oil futures for November expiry closed at $44.29 per barrel—2% lower than the previous day’s close at $45.20 per barrel.
Is EOG Resources Adapting to the Low Oil Price Environment?
EOG recorded $7.0 billion in net operating revenues for the first nine months of 2015, down 48% from $13.4 billion recorded in the corresponding period of 2014.
How Does the US Dollar Index Influence Crude Oil Prices?
Crude oil and the US Dollar Index are inversely related. The appreciation of the US dollar will negatively influence crude oil prices.
Crude Oil Supply Outage Could Boost Short-Term Crude Oil Prices
The EIA estimates that the supply outage in OPEC regions averaged 2.8 MMbpd in 2015. In the non-OPEC region, it averaged 0.74 MMbpd in 2015.
How Long Will Rising Gasoline Prices Support Crude Oil Prices?
December gasoline futures rose by almost 6% in the past month. However, gasoline prices fell by 30% in the past year due to oversupply concerns.
Will OPEC Initiate a Big Crude Oil Market Rally?
The preliminary survey from Bloomberg suggests that OPEC’s crude oil production rose slightly by 74,000 bpd to 32.2 MMbpd in October 2015.
Interpreting the Permian Basin Rig Count Decrease as of October 30
As of October 30, 2015, there were 578 working oil rigs in the United States. The Permian Basin accounts for 222 of these rigs, more than any other region.
How Long Will the US Dollar Impact the Crude Oil Market?
The US Dollar Index rose by 2.1% since October 9. The US dollar is expected to strengthen from the current levels due to diverging monetary policies.
WTI Crude Oil Prices Rose on Friday as US Rig Count Decreased
On October 16, WTI crude oil futures for November expiry closed at $47.26 per barrel—a 1% rise from the previous day’s close at $46.38 per barrel.
Permian Shale Oil Production Up in September: Who Benefited?
Permian shale oil production rose from 845,600 bpd in September 2007 to 2.0 MMbpd in September 2015. That’s a 20% rise over September 2014 and a 135% rise over the past eight years.
Permian Basin Oil Rig Crash Led the Way in Week Ended October 9
Currently, there are 605 working oil rigs in the United States. The Permian Basin accounts for 230 of these rigs, more than any other region.
Permian Basin Defied the Oil Rig Trend in the September 18 Week
Currently, there are 644 working oil rigs in the US. The Permian Basin accounts for 250 of these rigs—more than any other region.
Will Concho Resources’ Free Cash Flows Improve?
Concho Resources’ free cash flows (or FCF), defined as operating cash flows less capital expenditure, have remained negative in the past 13 quarters.
Concho Resources’ Debt Has Stayed Range-Bound: A Good Sign
Concho Resources’ net debt has been steady over the past 13 quarters. In 2Q15, the company’s net debt increased 7.9% from 1Q15 to ~$3.66 billion.
How the Weakness in WTI Crude Oil Spread to Oil Rig Counts
On September 11, Baker Hughes disclosed the US rig count at noon. WTI (West Texas Intermediate) crude oil increased 0.20% to ~$45.03 following the disclosure.
Permian Basin Rig Count Down Again the Week Ended September 11
Currently, there are 652 working oil rigs in the United States. The Permian Basin accounts for 248 of these rigs, more than any other region.
The Permian Basin Rig Count Slid Last Week
In the 12 months ended September 4, 2015, the number of active oil rigs in the Permian Basin fell by 308, or 55%. However, rig counts seem to be turning around.
Diamondback Energy’s Net Income Falls after Reaching High in 4Q14
Diamondback Energy’s 4Q14 adjusted net income of $99 million was the highest it recorded since it went public in 2012.
Spotlight on Parsley Energy in 2Q15
Parsley recorded $77.86 million in net operating revenues, down 5.4% from 2Q14. Lower price realizations decreased revenues, but higher production helped.
OPEC Is Sidelined: Is Crude Oil a Free Market Now?
OPEC (Organization of the Petroleum Exporting Countries) is considered a swing producer of crude oil. It produced 32.107 MMbpd of crude oil in July 2015.
WTI Crude Oil Prices Are Weak as Oil Rigs Increase
On Friday, August 21, Baker Hughes (BHI) disclosed the US rig count at noon. WTI (West Texas Intermediate) crude oil remained almost unchanged near ~$40.13.
Marathon Oil’s 2Q15 Adjusted Earnings Closely Matched Estimates
Marathon Oil’s 2Q15 adjusted earnings nearly matched estimates. Its 2Q15 adjusted loss per share was $0.23—compared the estimate of $0.225.
Permian Shale’s July Crude Oil Production Growth Slowest in 2015
The EIA estimates that the Permian Shale’s July crude oil production was ~2.02 MMbpd, only 0.1% higher than June’s production total. However, this is a 24% increase over production in July 2014.
EOG Resources’ Questionable Cost Efficiency in 2015
EOG’s year-to-date net income lost $164.5 million, compared to $1.37 billion net profit one year ago.
Permian Basin Rig Count Surged Ahead in Week Ending July 10
Currently, there are 645 working oil rigs in the US. The Permian Basin has 239 of these rigs, more than any other region.
Will the US and Iran Pressure the Crude Oil Market?
US production and the Iran deal could expand the oil supply in the oversupplied market. This could cause collateral damage to crude oil prices.
Positive Market Sentiments: Rigs Have Likely Bottomed
On Friday, June 26, Baker Hughes disclosed the US rig count. Crude oil rose 0.25% to $59.64. The rig count held around that level after the announcement.
Why EOG Resources Is among the Best Upstream Stocks
EOG Resources (EOG) has generated above-par returns over a three-year period. EOG returned 91.8% in the last three years, mainly due to its strong performance.
Permian Basin Rig Count Reverses: Adds 1 Last Week
Currently, there are 631 working oil rigs in the US. The Permian Basin has 232 of the rigs—more than any other region. Its oil rig count rose by one last week.
Permian Basin Rig Count Increases Last Week: Is It a Turnaround?
The oil rig count at the Permian Basin increased by one last week. It marks the first increase after three consecutive drops and the second increase in 26 weeks.
Crude Oil Prices: Forced by the Powers of Supply and Demand
OPEC pumps 40% of the world’s crude oil. It exports about 60% of the oil that’s traded globally. This gives OPEC an opportunity to impact the oil market.
Permian Basin’s Rig Count Drop Slows: Is a Turn Coming?
Currently, there are 646 working oil rigs in the US. The Permian Basin has 231 of these rigs—more than any other region. It produces the most crude oil in the US.
Natural Gas Market: Long-Legged Doji Pattern
Natural gas futures for June delivery showed the long-legged doji pattern on May 15. Prices are fluctuating in an upward range of $2.80–$3 per MMBtu.
Natural Gas Prices Trade above 100-Day Moving Average May 14
The bullish momentum suggests natural gas prices could continue this rally and hit the key resistance point of $3.2 per MMBtu. Prices tested this level in January 2015.
Permian Shale Oil Production Rises in April
On May 11, the EIA released its Drilling Productivity Report. Permian shale oil production was 1.1% higher than March and 30% more than April.
Natural Gas Prices Could Trade between $2.70 and $3.20 per MMBtu
Natural gas prices are fluctuating between $2.70 and $3 per MMBtu. Warmer weather and rising inventories are driving natural gas prices.
Last Week’s Biggest Movers in the Upstream and Integrated Subsectors
In the week to May 8, WTI crude oil gained ~0.5%, while Henry Hub natural gas gained almost 4%. This series will look at how American energy companies fared last week.
Continental Resources’ 1Q15 Earnings Exceeded Estimates
Between 1Q12–1Q15, Continental Resources’ adjusted revenues increased 13%. From 1Q14–1Q15, the company’s adjusted revenues decreased 37%.
Natural Gas Prices: Below the Key Resistance of $2.90 per MMBtu
Natural gas prices broke above the key level of $2.80 MMBtu on May 8. Prices could continue the momentum and hit the resistance of $2.90 per MMBtu.
Pioneer Natural Resources’ 1Q15 Earnings Fell Short of Estimates
Pioneer Natural Resources’ stock declined 2.5% to $159.90 on May 6 following its latest quarter earnings release on May 5. Its share price has gone up by ~8% since January 1.