Sweet 16 Updates - June 22

[dan_s]

I have updated my forecast/valuation models for MGY, SBOW and VTLE today. You can find them on the EPG website home page.

[Fraser921]

Why is crude so weak?

Paper traders?

Glut?

[dan_s]

There is NO GLUT of oil in the U.S. or the world. Per EIA, U.S. Total Petroleum Inventories (including the SPR) are near a 19 year low.

This dip in oil prices is all Fear of the Fed. There is no indication of a U.S. recessions anytime soon. It is hard to have a recession when we have virtually full employment.

Paper traders that were long NYMEX contracts may have gotten margin calls that they had to deal with this morning.
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Read this: https://www.fool.com/investing/2023/06/23/3-oil-stocks-to-buy-ahead-of-a-seemingly-inevitabl/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
3 Oil Stocks to Buy Ahead of a Seemingly Inevitable Rise in Oil Prices
By Matthew DiLallo – Jun 23, 2023 at 8:45AM
KEY POINTS
> EOG Resources (EOG) plans to return at least 60% of its oil-fueled free cash flow to shareholders.
> Devon Energy (DVN) will pay out up to 50% of its excess free cash to investors via its variable dividend.
> Pioneer Natural Resources (PXD) aims to send its investors at least 75% of its free cash flow.

[Orindakid]

Recession on the horizon?

[dan_s]

Is it possible to have a significant recession when the country has full employment? Consumer spending drives the U.S. economy. When everyone that wants a job has a job, they will keep spending money.

What if the most advertised recession in history never happened?