VBIN's oil stock thread.

[fenders53]

(03-05-2022, 09:05 AM)rnsmth Wrote:

(03-05-2022, 12:51 AM)fenders53 Wrote:  I saw a different report on SA today.  Only US and Canada up 65 total.  Rest of world down 27. It was also  Baker Hughes cited.  Still not fast enough.  I think the article implies this is the monthly report for FEB.

I am going to sell a few oil puts a week I guess.  They are pretty EZ money for months now.  I don't want to miss all the fun.  My EOG shares will be called away today.

I trimmed a little EOG yesterday and used the proceeds to add to AMGN.

EOG is still a overweight position, AMGN is a .4 weight position  

Here is a post of mine on EOG from another venue.

Early to bed, early to rise allowed me to focus on the recent EOG earnings call transcript. I am not the most experienced energy patch investor, so I entered the exercise with a large serving of humility.

Apparently they can cover the dividend at about $45 a barrel oil - and that is with their 83% increase in the regular dividend last year, plus a couple of special dividends in 2021 and the first special of 2022 ( $1 per share) coming at the end of March. 

This performance based on the average price of oil in 2021 of $68 a barrel. 

I suggest reading the earnings call transcript.

Here is one of the last bits from the transcript:  
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Third, we are committed to returning cash to shareholders. We demonstrated this through the return of nearly 50% of free cash flow last year, and this quarter's special dividend are (sic) third in less than a year. Doubling our regular dividend rate indicates our confidence in the durability of our future performance. The regular dividend is our preferred method to return cash to shareholders. And as we continue to increase the capital efficiency of EOG through low-cost operations and improved well performance, growth of the regular dividend will remain a priority. We truly believe the best is yet to come.

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Full transcript here  https://seekingalpha.com/article/4490639...transcript

[url=https://seekingalpha.com/article/4490639-eog-resources-inc-eog-ceo-ezra-yacob-on-q4-2021-results-earnings-call-transcript][/url]

That sounds good but EOG SP would be cut in half if oil got anywhere near 45.  EOG is a very good one though.  One of the best shalers.  Sad to see my shares leave but that is the down side to all the option premiums I collect.  This particular time it turned out about neutral.   I would add on a small dip. Otherwise I will just sell puts and collect more than a quarterly dividend every few weeks.   

Nobody thinks oil is going anything but up, but this week was parabolic.  Euphoric oil bull threads are everywhere so I'll expect some choppiness soon enough.  I remain bullish though.