Our Blog
RayJ’s Forecast
Investment firm, Raymond James (RayJ), recently issued their A & D (Acquisition and Divestiture) Quarterly for the fourth quarter of 2015. It contains a retrospective of last year, and more importantly, their price forecast for 2016. RayJ sees the first half of 2015 in a positive light, but rising supply, concerns about falling demand, and… Read More
Hedge Contracts Expiring
Hedge contracts enable oil and gas producers to lock in specific prices for their future production. Conversely, these arrangements enable buyers to anticipate a stable supply of energy at a known price. If you are an operator, and think prices are uncertain, or likely to decline in the future, you would be inclined to hedge… Read More
Time for a Turnaround
“World Oil” reports that famous hedge fund manager, Andrew Hall, has told his investors that despite a dismal 2015, he thinks crude is ripe for a rebound. Hall, whose Astenbeck Commodities fund lost 35% in value last year, still manages $2.1 billion in assets. However, when asked about these losses Hall observed that an uncertain… Read More
The Curse of Cheap Credit
There is an old saying that leverage is a two edged sword: it makes good times look better, and bad times look worse. When oil prices were strong and the sky seemed the limit, using other people’s money appeared to make sense. From 2004 to 2014 the high yield bond market doubled, but for oil… Read More
Permian Opportunities
Of the major domestic shale oil plays, only the Permian Basin of West Texas and Southeast New Mexico continues to increase production. “World Oil” cites a recent study by consulting firm IHS, which notes that the area is a hotbed of deal making as the opportunities there are the best currently available to shale operators. … Read More
