Stifel on Global Oil Market - July 2

[dan_s]

More and more evidence that the Wall Street Gang is starting to get it.

Energy Sector Note from Stifel on July 2:

"Market response post OPEC announcement suggests crude prices are biased higher. While it is difficult to peg the market’s specific
expectation for the June 22 OPEC meeting, we believe investors were expecting an output increase in the range of 0.3-0.7 mmbpod and
the meeting was nothing more than a hurdle that investors needed to clear to mitigate event risk. In our view, the agreed supply increase
simply offsets expected supply losses in Venezuela by year-end. It also firmed our view that the organization is proceeding forward under the
assumption that U.S. imposed Iran sanctions will be restored. Before adjusting for sanction implications, we see the market as undersupplied
for 2019 and 2020 by 0.6 mmbopd. Assuming the Oil Market Report’s (OMR’s) noted loss of 0.9 mmbopd in Iranian supply by year-end 2019,
the global market could be undersupplied to the tune of 1.5 mmbopd in 2020. All-told, the U.S. is somewhat limited in what it can do to fill this
void as the Permian is operating at full-tilt at present and has meaningful constraints until late-2019. This is overwhelmingly bullish oil macro."

[dan_s]

In this new report, Stifel provides updated Net Asset Values (current break-up values) per share for several of our Sweet 16 companies.

$262.88 for Concho (CXO)
$185.49 for EOG Resources (EOG)
$406.19 for Pioneer Natural Res (PXD)
$221.48 for Cimarex (XEC)

$36.99 for Centennial (CDEV)
$27.76 for Callon (CPE)
$208.32 for Diamondback (FANG)
$56.23 for Matador (MTDR)
$80.37 for Parsley (PE)