Focus on Upstream Companies with no oil hedged - Feb 16

[dan_s]

Latest Run in Oil Favors Least Hedged E&Ps - As oil prices hit from 13 month highs today, we remind investors of the hedge positions of our oily E&Ps. While there are numerous E&Ps with more than half their 2021 production hedged, virtually no operator has any significant 2022 hedge. Further, there is over 33% of our coverage group that has no hedges even this year such as OXY (Hold), APA (Buy), EOG (Buy), CLR (Buy), MGY (Hold), COP (Buy), CVX (Buy), and XOM (Hold). - Neal Dingmann at Truist Financial 2-16-2021

Energy - Exploration & Production - Energy - 1Q21 Production Likely to be Impacted by Weather - Temperatures in Midland TX are forecasted (per Bloomberg) to reach as low as ~5 degrees F this weekend, significantly below 5-yr avg temperature of ~50 degrees for the area for mid-February. Freezing temperatures have already caused spikes in certain natural gas hubs such as in OK/Anadarko Basin in anticipation of potential freeze-related issues with the benchmark Henry Hub trading up to nearly $7/mmbtu, Waha hub trading near $12/mmbtu, and Houston Ship Channel pricing near $9/mmbtu according to Bloomberg pricing. - Neal Dingmann