RDS.B

Don’t Follow the Social Media Likes: The Divine “Comment(y)”

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Image Source: Pilottage “Personally, it was a miserable experience for me to see things that others couldn’t.” – Nelson on Valuentum’s call preceding Kinder Morgan’s dividend cut. By Brian Nelson, CFA — A foreshadowing, a rare comment remembering Valuentum’s successful warning on Seadrill when we made our call on Kinder Morgan, June 2015. This was one of the more difficult articles for me to write. I don’t know why exactly, but the words just aren’t coming out right. Pardon me. It sounds trite, almost to the point of blasphemy, to call “The Divine Comedy” a self-help book, but that’s how Dante himself saw it. In a letter to his patron, Can Grande della Scala, the poet said that the goal … Read more

Analyzing Chevron and Important Updates in the Global Energy Industry

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Image Source: Chevron Corporation – November 2019 IR Presentation Summary In this note, let’s cover the current state of raw energy resource prices in North America and around the world. We’ll analyze Chevron’s 2020 capital investment and exploration budget, in particular, and the global energy industry at-large. Shares of CVX appear generously valued as of this writing given the numerous headwinds facing the energy industry going forward. By Callum Turcan The world of oil and gas equities has been battling with persistently low raw energy resource prices for some time now. Back in the middle of 2014, a barrel of light sweet crude delivered to Cushing, Oklahoma (home of the West Texas Intermediate, or WTI, benchmark), would fetch over $100. Now … Read more

ICYMI: Exxon Mobil’s Bright Growth Outlook

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This article originally appeared on our website December 8, 2021. Image Source: Exxon Mobil Corporation – December 2021 IR Presentation By Callum Turcan At the start of December 2021, Exxon Mobil Corporation (XOM) laid out its longer term strategy for the 2020s decade. We are going to cover that outlook, the state of the global energy complex, Exxon Mobil’s stellar and improving financial position, and what to expect going forward. Exxon Mobil is a tremendous enterprise and one of our favorite energy names out there. Outlook Overview The company noted in its early-December update that its capital expenditures would come in around ~$20-$25 billion from 2022-2027. Its investments are focused on its operations in the Permian Basin, Guyana, Brazil, its … Read more

Seeking Balance: What’s Happening in the Crude Oil and Iron Ore Markets

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Image Source: Sollven Melindo Commodity prices are notoriously volatile as the global markets often struggle to maintain a sustainable balance of supply-demand. Let’s take a look at some recent developments and coming events that are impacting the prices of crude oil and iron ore. By Kris Rosemann We’re not rushing to add any commodity-based exposure at the moment. We have some of course – but we’re not looking to add more to the newsletter portfolios. For starters, the iron ore pricing market appears to be setting itself up for another period of pain, and we’re preaching serious levels of caution for those considering the space as iron-ore prices have already begun to descend from the peak of the puzzling early-2017 … Read more