Silver as an investment

Category Archives: Devon Energy

Government By Goldman

Authored by Gary Rivlin and Michael Hudson via The Intercept, in partnership with The Investigative Fund, Steve Bannon was in the room the day Donald Trump first fell for Gary Cohn. So were Reince Priebus, Jared Kushner, and Trump’s pick for secretary of Treasury, Steve Mnuchin. It was the end of November, three weeks after Trump’s […]

New US Shale Play Emerges As Rig Count Rises For 21st Week In A Row

Crude production from the Lower 48 dropped marginally last week, despite rising rig counts…   And in the last week oil rig counts rose once again (21st week in a row) up 8 to 741 – highest since April 2015 – notably given the lagged response to prices, we might expect the rig count rises […]

Why Cheap Shale Gas Will End Soon

Submitted by Arthur Berman via, Enthusiasts believe that shale gas is simultaneously cheap, abundant and profitable thus defying all rules of business and economics. That is magical thinking. The recently released EIA Annual Energy Outlook 2016 sparkles with pixie dust as it forecasts almost unlimited gas supply at low prices out to 2040 and […]

Central Bank Rally Fizzles: Equity Futures Lower As Attention Turns To “Hawkish Fed” Risk

The biggest macro development over the weekend was China’s latest “gloomy” economic update, in which industrial production, retail sales and lending figures all missed estimates, however now that we are back to central bank bailout mode, bad news is once again good news, and the Shanghai Comp soared +1.7% among the best performers in Asia […]

As A Frenzied Wall Street Buys Shale Equity Offering At A Record Pace, Exxon’s CEO Has A Stark Warning

If Saudi Arabia is shocked at the relentless ability of the U.S. shale “marginal producers” to continue pumping even with oil prices below breakeven costs for many (which as reported recently have mysteriously tumbled from $70 to $40) at a time when the junk bond market – the traditional conduit of how energy companies have […]

Devon Energy Announces Sale Of $1 Billion In Stock, Dilutes Existing Shareholders By 13%

Congratulations to Devon Energy: moments ago it announced that with Goldman as underwriter, it became the first company to successfully access the equity offering window in a long, long time sell equity in the form of 55 million shares in stock, or just over $1 billion in proceeds assuming today’s closing price of $20.33.  The […]

S&P Just Downgraded 10 Of The Biggest US Energy Companies

Just 10 days after “Moody’s Put Over Half A Trillion Dollars In Energy Debt On Downgrade Review“, moments ago S&P decided it wanted to be first out of the gate with a wholesale downgarde of the US energy companies, and announced that it was taking rating actions on 20 investment-grade companies, including 10 downgrades. The […]

U.S Drillers’ Operating Losses Could Surge In 2016

Submitted by Michael McDonald via, What do you do when all of the low hanging fruit is gone? That question is one that oil producers are increasingly facing as they confront an oil price slump that is now more than a year old and shows no serious signs of abating. With oil prices having […]

Giant Sucking Sound of Capital Destruction in US Oil & Gas

Chesapeake Energy is a good example. The second largest natural gas producer in the US, after Exxon, reported its debacle yesterday. Revenues plunged 49% from the quarter a year ago, when the oil bust had already set in. The company has been slashing costs and capital expenditures. In June, it eliminated its dividend. And yesterday, […]

Why Dan Loeb Refuses To “Sell In May And Go Away”

Last year the biggest permabull within the hedge fund community was David “20x P/E” Tepper. Now that real (i.e., GAAP) forward P/Es briefly touched 21x a few days ago, a new bull had to step up or else Tepper would start sounding like a broken record. That someone is Third Point’s Dan Loeb, who not […]