Sweet 16 Update - May 15

[dan_s]

During the week ending May 14 there were wild swings in the oil price and the stock prices. It was a mixed week with 10 of the 16 moving higher and the portfolio gaining another 1.19%. For the YTD the portfolio is up 83.20%, the best start since 2006.

The hack job on the Colonial Pipeline caused a lot of confusion, but it is back online now. The refiners have some catching up to do, which is bullish for oil demand.

I think the announcement from the CDC on Thursday afternoon was a HUGE positive. All fully vaccinated people no longer need to wear masks. This is a big step toward ending the pandemic; which is the #1 thing holding back the global economy.

Oil prices rallied on Friday, May 14 with JUN21 closing at $65.51, $0.62 higher than the close on May 7. The bullish channel that I showed you in last week's podcast is still intact and getting stronger. The top of the channel is pointing at $70/bbl and Goldman Sachs is holding to their $77/bbl WTI forecast for sometime in Q3.

We sent out updated profiles for CLR, LPI and AR this week. We cover Antero Midstream (AM) in the AR profile. AM is a C-Corp with over 9% annual dividend yield and it should be able to increase dividends later this year.

The profile for CRK has been posted to the EPG website and will be emailed to all members on Saturday morning.

After the podcast, I will be finish my review of the Callon Petroleum (CPE). CPE is up 179% YTD, but still 72% below my updated valuation.

I will be driving to Dallas on Sunday to speak at the Mick Law Energy Conference at 3:30PM.