PR Permian

[Lbark]

https://www.insidearbitrage.com/symbol-metrics/PR/

didnt post the first time but why are co ceo's and a director selling all of their stock and why the big plunge today? is this the offering? doesnt seem like confidence in compnay by the officers.

[Cliff_N]

PR is part of big club today, the entire market is down. When you see GUSH down 6.9% and DOW knocking on the door of being 400 points down, combined with WTI falling $2.83 a barrel, we get pounded. Perfect storm. The drop is common to most (almost all) Oil and Gas companies. Note the small multiple run charts for each stock (far right), you can almost overlay the downward trend for all:

[Lbark]

thanks, it hurts today. Do you know why recently co ceo's of PR sold all of their stock?

[dan_s]

> All stocks are exposed to "Market Risk". When there are big market selloffs ("corrections"), most stock prices will go down.
> For companies that get most of their revenues from commodities (oil, gas, copper, silver, etc.) for which they don't control the price, they are going to trade lower when the commodity prices drop.

It is VERY IMPORTANT that you know the production mix of each company that you own. WTI is down 3.8% at the time of this post, but HH natural gas price is up 6.5% today.

For example, Permian Resources production mix is 47.5% crude oil, 30% natural gas and 22.5% NGLs. Therefore, a large amount of the impact from lower oil prices (which may only last a day or two) will be offset by rising natural gas prices. NGL prices are unchanged today.

There is nothing wrong at Permian Resources, it is in great shape.

[Lbark]

thanks, Dan. Was there a reason for the insider sales awhile back? How was Mexico?

[Fraser921]

If you think yesterday was bad...,

Sir , may I have another!

Makes one question the narrative of a supply deficit. The market is acting like there is a glut.

PR is looking like it's giving up all its gains.

How about VTLE? Was mid 60's before mgt sold us out. Now it wallows in mid 40's. I long for the days of $ 120 Tp

[dan_s]

I looked out the window and the sky is not falling.

The oil price you see in the news is the front month NYMEX futures contract.

My opinion is that the Paper Traders misread the OPEC+ announcement. The voluntary production cuts "might" go away in Q4, but that does not mean that OPEC won't extend them if necessary. Saudi Arabia controls OPEC and they need Brent over $80/bbl.

[mitchl]

Maybe those VTLE hedges will come in handy after all.