Weekly Sankey

[ChuckGeb]

On XOM, oil markets, bullish on gas for AI

https://youtu.be/xC5fyM5HqHw?si=-vab4QbIsQuSWRJC

[dan_s]

What he says at the very end is bullish for SEI.

[ChuckGeb]

It does not appear to me that SEI has a shortage of opportunities. Their ability to navigate a rapidly expanding marketplace with substantial competition for the necessary capital equipment and financing growth will be the key to their success.

[dan_s]

The key to SEI is that Solaris are already a highly respected engineering firm. They have a strong client base in the Permian Basin where using produced natural gas that is almost free to generate electricity, makes a lot of sense to me.

[ChuckGeb]

They have a nice jump start but just like the frac sand business it’s success could be short lived as the XOM, CVX, OXY, FANf, EOG of the Permian realize with their balance sheets they can power up direct and SEI could get squeezed. I like SEI a lot but they must execute with precision. I am hopeful they do.