October 6, 2023 | Daily JAM, Dividend Income, Jubak Picks |
The Wall Street Journal has reported that Exxon Mobil (XOM) is in advanced talks to buy Pioneer Natural Resources (PXD) in a deal valued at $60 billion. Pioneer currently has a market cap of $55 billion. Through in th debt that Exxon would be buying and there’s not a lot of extra upside here, in my opinion. Today’s 10.45% jump in pioneer shares to care of a lot of any potential deal premium. (I’m assuming that the report is accurate. Today’s news story follows on earlier speculation that the two companies were talking.) Unless you think another bidder will emerge–difficult but not impossible at this deal size, I’d sell my shares here. I like Pioneer as an independent big dividend paye
May 8, 2023 | Daily JAM, DVN, FANG, Jubak Picks, PXD, Videos |
This week’s Trend of the Week is Where is All That Oil Cash Going to Go? The likely answer: the Permian Basin and acquisitions. Oil companies like Exxon Mobil (XOM) are putting so much cash into the bank, they don’t know what to do with it. Exxon Mobil had $32.7 billion in cash in the bank. With little debt, and plenty left over after capital spending, dividends, and buybacks, the company is left with a tremendous amount of cash. Historically, extra cash could be used in oil exploration, which could take 5-15 years. In a global warming economy, that doesn’t make sense since we don’t know where oil prices and demand will be in the years ahead. The better option is acquisitions. One of the companies Exxon is rumored to be targeting is Pioneer Natural Resources (PXD) for their assets in the Permian Basin. Chevron (CVX) is in a similar position as Exxon and you can expect them to be in the market for Permian companies as well. Other Permian Basin companies that are ripe for being acquired are Devon Energy (DVN) and Diamondback Energy (FANG). I already have PXD and DVN in a portfolio in my JubakPicks Portfolio, and I’ll now be adding FANG as well.
August 15, 2019 | Daily JAM, DG, HDB, ITUB, Mid Term, WMT |
Today night I added Step #2 to my Special Report 5 Is Your Portfolio Ready for the Next Big? The post below is a cut and paste of the material I added to the Special Report. I'm posting it separately here to make it a bit more accessible. (In the full Special Report...
May 23, 2019 | Daily JAM, You Might Have Missed |
The combination of a big build in U.S. crude inventories this week and fears that the escalating U.S.-China trade war will slow global economic growth (and global oil demand) took a big whack out of oil prices and oil stocks today. The U.S. Energy Information...
April 12, 2019 | Daily JAM, Morning Briefing, PXD |
Chevron (CVX) has agreed to buy Anadarko Petroleum (APC) for $33 billion in cash and stock. On the news shares of Anadarko are up 32.5% to $61.85. Shares of Chevron are off 4.91% to $119.81. Measured by oil and natural gas production, the deal puts Chevron...
April 1, 2019 | Daily JAM, FANG, Stock Alerts |
Diamondback Energy (FANG) made #5 in my Special Report on the 10 most dangerous stocks this earnings season. And I'm selling it out of my Jubak Picks Portfolio today, April 1. If you're looking for immediate warning signs for the upcoming quarter Diamondback Energy...
March 29, 2019 | Daily JAM, FANG, HP, PXD |
Once upon a time investors and traders wanted to own the shares of U.S. oil shale producers and shares of the oil service companies that sold them equipment and services. U.S. oil production from oil shales--especially the low-cost Permian Basin--was soaring. Oil...
December 3, 2018 | Daily JAM, EQNR, FANG, PXD, Short Term |
As of 2:30 p.m. New York time U.S. benchmark West Texas Intermediate was up 3.04% to $52.48 a barrel. International benchmark Brent crude gained 2.84% to break back above $60 a barrel at $61.15. Part of the reason for the gain is a general sigh of relief that the...
September 19, 2018 | Daily JAM, FANG, Stock Alerts |
Although other oil producers in the Permian Basin look to be slowing the development of their assets in the face of transportation bottlenecks that are making it tough to get oil out of the basin, Diamondback Energy has teamed up with the Carlyle Group to form a joint...
September 12, 2018 | Daily JAM, FANG, PXD |
It hasn't exactly been a great few months oil shale producers in the Permian Basin. Shares of Pioneer Natural Resources (PXD), the biggest pure play on Permian oil, closed at $169.97 a share today, August 29, down from $212.31 a share on May 18. That's a decline of...
April 23, 2018 | Daily JAM, FANG, HP, PXD, SLB, STO, YPF |
Oil futures in New York settled at their highest since December 2014. U.S. benchmark West Texas Intermediate climbed 0.35% to close at $68.88 a barrel. International benchmark Brent crude rose 0.88% to $74.71 a barrel. The gains were unusual in that the U.S. dollar strengthened today. But the markets had news of another missile attack on Saudi Arabia–again unsuccessful–by Houthi rebels in Yemen. The Houthis are backed by Iran and Yemen has become a proxy war for power in the Middle East between Iran and Saudi Arabia (and by extension, Russia and the United States.)
April 18, 2018 | Daily JAM, FANG, PXD, Short Term, STO |
West Texas Intermediate climbed 3.16% today to $68.80. Futures for May delivery moved over $68 a barrel for the first time in three years. Yesterday the American Petroleum Institute reported a 1.05 million barrel draw down in U.S. inventories. Today the U.S. Energy Information Administration reported a drop in crude inventories of 1.1 million barrels. Energy analysts had projected an increase in inventories for the week ended April 13. But it’s not just near-term supply and demand figures that are pushing oil priced higher.