PDC Energy Inc

On January 11–18, Laredo Petroleum fell the most on our list of upstream energy stocks from XOP.

Integrated energy stock YPF Sociedad Anonima (YPF) was the second weakest on our list last week, and midstream stocks Western Gas Partners (WES) and Shell Midstream Partners (SHLX) ranked third and fourth.

US gasoline production decreased 0.4% to 10.3 MMbpd (million barrels per day) on July 13–20. The production decreased 1.3% from a year ago.

The EIA estimates that the US crude oil output was steady at 11 MMbpd on July 13–20. The production was steady for the second consecutive week.

Oasis Petroleum (OAS) stock rose significantly in the run-up to the company’s Q1 2018 earnings release in early May, which didn’t disappoint.

Between April 20 and April 27, oilfield services stock Ensco (ESV) fell the most on our list of energy stocks.

China’s crude oil imports increased 10% to 8.4 MMbpd (million barrels per day) in 2017 from 2016, according to China’s General Administration of Customs.

US crude oil inventories decreased by 1.1 MMbbls to 411.6 MMbbls on January 12–19, 2018. They also fell ~12% in 2017.

US distillate inventories fell by 3.8 MMbbls or 2.7% to 139.2 MMbbls on January 5–12, 2018. The inventories fell by 29.9 MMbbls or 18% from a year ago.

We’ll now look at PDC Energy’s (PDCE) stock performance compared to the broader energy sector, the broader market, and energy prices.

US gasoline inventories rose by 4.1 MMbbls (million barrels) to 237.3 MMbbls between December 29, 2017, and January 5, 2018.

According to the EIA, US crude oil production increased by 28,000 bpd (barrels per day) to 9,782,000 bpd on December 22–29, 2017.

WTI crude oil (USL) prices are at their 30-month high. The US benchmark also opened above $60 per barrel in January for the first time since 2014.

US crude oil (USO) futures hit $60.73 per barrel in early morning trade on January 2, 2018—the highest level since June 2015.

February WTI crude oil futures (DWT)(SCO) contracts rose 0.8% to $60.3 per barrel at 12:45 AM EST on December 29, 2017—the highest level since June 2015.

According to the EIA, global crude oil supply outages fell by 10,000 bpd (barrels per day) or 0.7% to 1,555,000 bpd in November 2017.

Cushing inventories fell by 3,317,000 barrels to 52.2 MMbbls (million barrels) on December 1–8, 2017, according to the EIA.

China’s crude oil imports rose by ~1,710,000 bpd (barrels per day) or 24% to ~9,010,000 bpd in November 2017—compared to the previous month.

Whiting Petroleum’s (WLL) forward EV-to-EBITDA multiple of ~5.4x is mostly in line with the peer average of 5.5x.

US crude oil production rose by 25,000 bpd (barrels per day) or 0.3% to 9,707,000 bpd on November 24–December 1, 2017, according to the EIA.

The US Dollar Index advanced 0.1% to 92.8 last week. Consequently, it pressured oil prices during the week.

Goldman Sachs predicts that oil (USO) (DWT) prices might fall quickly if there’s any disappointing announcement in OPEC’s meeting.

US crude oil (DWT) (UCO) futures hit $58.95 per barrel on November 24, 2017—the highest level in nearly three years.

The EIA estimates that US gasoline inventories rose by 894,000 barrels or 0.4% to 210.4 MMbbls (million barrels) on November 3–10, 2017.

The EIA estimates that US gasoline demand rose by 35,000 bpd (barrels per day) or 0.4% to 9,496,000 bpd on October 27–November 3, 2017.

The global oil supply is expected to average 97.99 MMbpd in 2017, which is 760,000 bpd or 0.8% higher than the oil supplies in 2016.

The EIA estimates that the four-week average US gasoline demand fell by 76,000 bpd (barrels per day) to 9,345,000 bpd on October 6–13, 2017.

The EIA estimates that OECD’s oil inventories rose by 2.5 MMbbls to 2.98 MMbbls in September 2017—compared to August 2017.

US gasoline inventories rose for the fourth straight week. The inventories are 8.5 MMbbls or 4% higher than the five-year average.

The US Energy Information Administration (or EIA) released its “Weekly Petroleum Status Report” on October 12. It estimates that US crude oil production fell by 81,000 bpd (barrels per day).

November WTI (West Texas Intermediate) crude oil futures’ moving averages suggest that crude oil prices could keep trading higher going forward.

Cushing crude oil inventories rose for the sixth consecutive week. Any rise in Cushing inventories is bearish for crude oil (USO) (USL) (SCO) prices.

US crude oil (USL) (DBO) (OIL) prices fell on October 4, 2017, despite the massive draw in US crude oil inventories.

Weekly US gasoline demand rose by 81,000 bpd to 9.5 MMbpd on September 15–22, 2017. Gasoline demand rose by 642,000 bpd or 7.2% YoY.

Brent crude oil futures closed at $57.54 per barrel on September 29, 2017. Some OPEC officials think that $60 per barrel for crude oil isn’t sustainable.

On September 27, 2017, the EIA estimated that US crude oil production rose 37,000 bpd (barrels per day) to ~9.5 MMbpd from September 15–22, 2017.

On September 19, 2017, Iraq’s oil minister indicated that major producers’ output cut deal would be extended beyond March 2018.

October WTI (West Texas Intermediate) crude oil (USO)(UCO)(DIG) futures contracts rose 0.16% and were trading at $49.98 per barrel in electronic trading at 2:10 AM EST on September 18.

On September 13, the EIA (U.S. Energy Information Administration) released its weekly crude oil inventory report.

Russia’s crude oil production averaged ~11.0 MMbpd in 2016—the highest level in 30 years. Russia’s crude oil production could average 11.1 MMbpd in 2017.

West Texas Intermediate crude oil (DBO) (DIG) (XLE) futures contracts for October delivery rose 1.2% to $48.07 per barrel on September 11, 2017.

The US Dollar Index fell 0.34% to 91.33 on September 8—the lowest level in the last 33 months. Prices fell due to the following factors.…

In this series, we’ll review US crude oil inventories, refinery demand, production, and gasoline and distillate inventories.

Hedge funds increased their net long positions in US crude oil futures and options by 43,861 contracts or 18.4% to 282,362 contracts on July 25–August 1.

Saudi Arabia is expected to cut exports 10% to North Asian refiners in September 2017 due to OPEC’s production cut deal.

A preliminary market survey estimates that Cushing inventories fell on July 28–August 4, 2017. Inventories fell for the 11th consecutive week.

The EIA estimates that US crude oil production could average 9.9 MMbpd in 2018. It would be the highest level ever. It could weigh on crude oil prices.

September WTI (West Texas Intermediate) crude oil futures contracts rose 0.87% to $49.59 per barrel on August 2, 2017.

The EIA (US Energy Information Administration) estimates that US gasoline demand rose 1.5% to 9.6 MMbpd (million barrels per day) in May 2017 compared to May 2016.

WTI crude oil prices have fallen almost 12.0% year-to-date due to the rise in production for the United States, Libya, Nigeria, Brazil, and Canada in 2017.

The EIA reported that US crude oil production rose 59,000 bpd to 9.4 MMbpd between June 30, 2017, and July 7, 2017.

Anadarko Petroleum (APC) plans to release its 2Q17 earnings on July 24, 2017. APC’s 2Q17 revenue estimate stands at ~$2.5 billion compared to its 2Q16 revenues of ~$1.9 billion.

On June 28, 2017, Carrizo Oil & Gas (CRZO) announced its intention to acquire properties owned by ExL Petroleum Management in the Delaware Basin.

Reuters estimates that OPEC’s crude oil exports rose by 450,000 bpd to 25.92 MMbpd in June 2017—compared to the previous month.

August US crude oil (VDE) (IEZ) (XES) futures are trading above their 20-day moving average of $45 per barrel as of July 3, 2017.

Cushing crude oil inventories have fallen 10% in the last ten weeks. A better-than-expected fall in Cushing inventories could support US crude oil prices.

Noble Energy (NBL) holds the largest acreage position in the DJ Basin compared to its acreage positions in other plays in the US onshore space.

On June 19, 2017, the National Oil Corporation of Libya reported that the country’s crude oil production rose by ~50,000 bpd to 885,000 bpd in June 2017.

The EIA reported that US distillate inventories rose by 0.3 MMbbls to 151.4 MMbbls on June 2–9, 2017. Inventories rose for the third straight week.

Anadarko Petroleum’s key strategies In this part, we’ll discuss Anadarko Petroleum’s (APC) focus areas, cash-generation areas, and future value areas. As we saw in the previous part, Anadarko will focus on its US onshore and Gulf of Mexico operations in 2017. The company believes that its improving cash flow and cash position put it in […]

A Bloomberg survey estimates that OPEC’s crude oil production rose by 315,000 bpd to 32.21 MMbpd in May 2017—compared to the previous month.

The US Dollar Index fell 0.6% to 96.6 on June 2, 2017—the lowest level in seven months. The US dollar fell due to a lower rise in US jobs in May 2017.

The EIA estimated that four-week average US gasoline demand rose by 124,000 bpd (barrels per day) to 9,430,000 bpd on May 12–19, 2017.

June WTI (West Texas Intermediate) crude oil (IXC) (IYE) (USO) futures contracts have risen ~5% from their five-month low as of May 15, 2017.

June diesel futures contracts rose 2.1% to $1.47 per gallon on May 10, 2017. Prices rose due to the larger-than-expected fall in distillate inventories.

Market surveys estimate that Cushing crude oil inventories rose between April 28 and May 5, 2017.

A less-than-expected rise in gasoline inventories supported gasoline prices on May 3, 2017. Gasoline and crude oil (DIG) (SCO) (VDE) prices rose on May 3.

The EIA (U.S. Energy Information Administration) reported that US crude oil production rose by 13,000 bpd (barrels per day) to 9,265,000 bpd on April 14–21.

Global crude oil supply outages rose 12.9% month-over-month, but fell 10% YoY. The rise in outages could have a positive impact on crude oil prices.

The EIA (U.S. Energy Information Administration) reported that US distillate inventories fell by 2 MMbbls to 148.3 MMbbls on April 7–14, 2017.

The EIA estimates that Iran’s crude oil production was flat at 3.8 MMbpd (million barrels per day) in March 2017—compared to February 2017.

A market survey of 31 banks shows that US WTI crude oil prices could average $54.5 per barrel in 2Q17. In 2Q17, prices could break the February 2017 high.

Russia’s crude oil production is down ~179,000 bpd (barrels per day) from 11.23 MMbpd in October 2016 due to major producers’ production cut deal.

The EIA estimates that Iraq’s crude oil production fell by 115,000 bpd (barrels per day) to 4.42 MMbpd in February 2017—compared to the previous month.

US crude oil imports fell by 745,000 bpd to 7,405,000 bpd from March 3–10, 2017. Imports fell 9.1% week-over-week and 3.7% year-over-year.

Crude oil (IEZ) (RYE) (USO) (XOP) prices rose ~16% between November 15, 2016, and March 6, 2017, due to major oil producers’ production cut deal.

US crude oil production is at the highest level since February 2016. The rise in crude oil production pressured crude oil prices on March 8, 2017.

A Bloomberg survey estimates that OPEC showed 104% compliance with targeted production cuts in February due to major producers’ production cut deal.

April West Texas Intermediate crude oil (ERX) (USO) (UCO) futures contracts were flat at $54.45 per barrel in electronic trading at 12:40 AM EST on February 24, 2017.

On February 22, the API released its weekly crude oil inventory report. It reported that US crude oil inventories fell by 0.88 MMbbls from February 10–17.

By year-end 2017, Encana (ECA) plans to increase its corporate margin to more than $10 per boe (barrel of oil equivalent) from year-end 2016’s corporate margin of ~$6.4 per boe.

The EIA (U.S. Energy Information Administration) reported that US distillate inventories fell by 0.7 MMbbls to 170.1 MMbbls from February 3–10, 2017.

March WTI (West Texas Intermediate) crude oil (XLE) (USL) (UCO) futures contracts fell 1.7% and closed at $52.93 per barrel on February 13, 2017.

Crude oil prices rose between November 15 and December 28, 2016, due to the expectation that major oil producers’ production cuts would curb oversupply.

The EIA estimated that four-week average US gasoline demand fell by 39,000 bpd (barrels per day) to 8,222,000 bpd from January 20–27, 2017.

US crude oil (BNO) (USO) (UCO) (IEZ) prices are near an 18-month high as of February 6, 2017. The S&P 500, Dow Jones, and NASDAQ are near all-time highs.

Crude oil prices have risen ~15% since November 2016 due to the expectation that major oil producers’ production cuts would curb oversupply in the market.

It shouldn’t be surprising that oil and gas producers have been scrambling to add Permian acreage to their portfolios.

For 4Q16, Murphy Oil (MUR) expects total production of 162 Mboe (thousand barrels of oil equivalent) per day–164 Mboe per day.

According to PDCE’s presentation at the Goldman Sachs Energy Conference on January 5, 2017, it expects its 2017 capital program to be in the range of $725 million–$775 million.

In 3Q16, PDC Energy reported total production of ~65.3 Mboepd, ~39% higher compared to its total 3Q15 production of ~47 Mboepd.

On December 6, 2016, crude oil (USO) and natural gas (UNG) producer PDC Energy (PDCE) closed its previously announced transformative acquisition.

CPE’s highest target price stands at $24, while its lowest target price stands at $12.42, and its median target price stands at $19.5.

Libya’s crude oil production   On December 20, 2016, Libya’s National Oil Corporation reported that pipelines leading from the Sharara and El Feel fields were reopened. The pipelines were closed for two years due to militant attacks. The pipelines are expected to add 270,000 bpd (barrels per day) of crude oil supply over the next three months. The […]

Whiting Petroleum’s (WLL) high target price stands at $18.00. Its low target price is ~$6.90, and its median target price is $12.50.

For the week ending December 9, 2016, US gasoline inventories were 5% higher than they were in the same period in 2015.

Bill Barrett Corporation (BBG) had the highest unhedged operating margins among its peers in the DJ Basin, based on 3Q16 calculations.

On November 16, 2016, Noble Energy (NBL) provided its long-term outlook from 2016–2020. It also provided an update on its US onshore operations.

Debt reduction could be one of the most advantageous trade-offs Whiting Petroleum (WLL) sees resulting from its Bakken midstream divestiture.

OPEC’s crude oil production rose by 236,700 bpd (barrels per day) to 33,643,000 bpd in October 2016—compared to the previous month.