VBIN's oil stock thread.

[fenders53]

(06-24-2021, 06:59 AM)EricL Wrote:

(06-23-2021, 03:07 PM)vbin Wrote:

(06-23-2021, 09:20 AM)EricL Wrote: EOG's latest investor presentation from June 3rd showed that each $1 increase in crude price leads to another $102 million in net income.

The special dividend was already paid for at ~$45 crude prices and they showed another $1.9B in cash flow on top of that at $60 WTI.

WTI is now at $74.

Buybacks next?

Do u have position in EOG, seems oxy makes additional $250M for every $1 increase in oil prices.

Yes, I own EOG, and have for a while.

It wouldn't surprise me if OXY was more levered to price since their production is greater. OXY's was, and still is, dogged by massive debt and inept management, so they are still trading at a discount to the other big names in the sector.

$70 oil is a god-send for OXY, and it probably isn't a bad play if prices stay higher. It was an $80 stock the last time crude was this level.

That was back when I was following the individual stocks closer.  That has to be the ugliest debt story in history among an oil major that survived.  They really need things to play out for a longtime.  (which is possible).  It would seem it would be hard to get shareholder interest at any elevated SP with the hope for a real dividend years away.  If management was smart anyway, which they have proven they are not.  It was a great buy if you caught the bottom of course but they all were.

Sorry for the pessimism VBIN but management I can trust is way up on my investment criteria list.