Permian Basin Stocks are now oversold

[dan_s]

Barrons: Energy: Permian Basin Stocks Are a Buying Opportunity
ByTeresa Rivas
June 11, 2018 10:17 a.m. ET

CPE, CXO, FANG and XEC all rated as BUYS in this article.

https://www.barrons.com/articles/energy ... yptr=yahoo

If you took a hard look at slides 8 and 9 in my June 9th podcast (on the EPG website now), you now know that the Wall Street Gang has grossly over-blown the Permian Basin Takeaway Capacity issue. They do so because they like volatility, which generates more fees for them. Even in Credit Suisse's worst case scenario, it might lower my valuations of a few of the Permian Basin companies in the Sweet 16 by 5% to 10%. It is a short-term problem. The Texas oil & gas industry is the most advanced on this planet. The service companies + rail + truckers will get the Permian oil to market.

What's causing the big discount of WTI to Brent is that we have too much ultra-light oil and not enough heavy oil to blend it with.

We will be publishing a new report on Jagged Peak Energy (JAG) this afternoon. Read carefully how this small-cap has addressed the Permian Basin takeaway capacity issue.

Lonestar Resources (LONE) is selling all of their oil through a marketing company that gets their oil to the LLS market. Lonestar should get $3 to $4 discount to BRENT for their oil.