Oil price, Shell, Total, Heritage, Range Resources, Faroe/Tullow, Tullow/OMV, Sundry-Core Labs-Trinity and finally…
WTI $101.28 +44c, Brent $108.98 +86c, Diff $7.70 +42c, NG $4.83 +3c
The above list of stocks is a bit of a fraud, I have been out at CNBC and meetings in London where the tube strike is making life a tad difficult. I am making a few very brief comments and will add to them tomorrow when it is only BG, Exxon and Chevron!
The oil price recovered yesterday and Brent nearly took out the $109.50 resistance when the API stats came out and WTI led things back a bit. Inventories came in at 3m barrels vs consensus of 2.2 so watch out for the EIA numbers tonight.
Having put Shell back on the buy list at the time of the profit warning I am feeling good about todays numbers, nothing to write home about but in my view doing all the right things. This is particularly so downstream where I have rather gone on about the need for more rationalisation which will lead to improved cash flow and profitability. More tomorrow perhaps.
Like Shell, Total has performed well lately and these figures, albeit down on last years 1Q are respectable enough. A 5% fall in production (particularly liquids) and weaker prices were responsible and the company warn about a big maintenance programme in Q2. To offset that there is an exciting exploration programme with a number of high profile wells on the way.
A bid at 320p from Al Mirqab this morning puts to an end the roller coaster ride that Heritage has been over the years. With Tony Buckingham at the helm it was never going to be boring and I have met shareholders in the company who have never met the mysterious man. The bid comes just as weary long-suffering shareholders were getting a bit of payback for their patience and to be fair I rather wish that having made the Nigeria bet the company didn’t keep the money on the table for longer. Either way, in a stock like this you live and die by the sword and don’t ask any questions so I will just say that I think it has gone out leaving plenty for the next man…
Having only recently started proper coverage of this stock I think I may have been buying at the bottom, certainly if the new management does what I think it is capable of. Make no mistake, this is by no means risk free and I point out all my previous comments about the debt and the need for asset sales but todays announcement from Guatemala may, when the full results are in be good news. I have put in a call and hope to add more tomorrow.
Faroe have bought 53.1% of Schooner and 60% of Ketch from Tullow for $75.6m plus a royalty. This seems a pretty good deal particularly for Faroe and compliments their exploration portfolio. I have remained positive on Faroe lately (interview on TipTV on www.malcysblog.com) and think that there is more to go for here.
More asset sales from Aidan’s boys as they downsize their Madagascar exposure by selling 35% of blocks 3109 and 3111 to OMV.
Core Labs in the US is a stock I have liked for a long time, check out their best ever quarter and re-affirmation of guidance…
Trinity E&P have had results, with 4 meetings and simultaneous conference calls I will get hold of Robert tomorrow and refer back if appropriate.
I watched Bayern vs Real last night which was blistering stuff as Bayern were taught a proper lesson, tonight lets hope that Chels can do the same to Athletico…
Charlton Athletic remain in the Championship after a fine win but Birmingham are in deep doo doo as they say, good thing the owner is in Jail otherwise he would have to watch it…
The snooker is now at the good bits as Ronnie O’Sullivan destroys Murphy 13-3 or similar.
And farewell to Bob Hoskins who died today, for some people Roger Rabbit but for me the performance of a lifetime in The Long Good Friday…