Recently commodity prices have fallen to multi-year lows. Read our December Market Perspective to learn how these dramatic price movements may impact consumers, industries and companies.
Oil & Gas Exploration & Production Bank Re-determinations: A PrimerRon Barone
Oil and gas companies will come under financial duress this October, when banks re-determine the borrowing base of oil & gas reserves. By some estimates, roughly 75% of borrowers expect a decrease in their borrowing base, due to the low oil and gas price environment. This re-determination of lending facilities will affect those companies that locked in higher oil and gas prices last year, but have their hedges rolling off now, at the same time as the re-determination period occurs, leaving them exposed to the current low oil and gas prices.
Actionable trade ideas for stock market investors and traders seeking alpha by overlaying their portfolios with options, other derivatives, ETFs, and disciplined and applied Game Theory for hedge fund managers and other active fund managers worldwide.
Ryan Renicker, CFA
Oil & Gas Exploration & Production Bank Re-determinations: A PrimerRon Barone
Oil and gas companies will come under financial duress this October, when banks re-determine the borrowing base of oil & gas reserves. By some estimates, roughly 75% of borrowers expect a decrease in their borrowing base, due to the low oil and gas price environment. This re-determination of lending facilities will affect those companies that locked in higher oil and gas prices last year, but have their hedges rolling off now, at the same time as the re-determination period occurs, leaving them exposed to the current low oil and gas prices.
Actionable trade ideas for stock market investors and traders seeking alpha by overlaying their portfolios with options, other derivatives, ETFs, and disciplined and applied Game Theory for hedge fund managers and other active fund managers worldwide.
Ryan Renicker, CFA
Oil & Money 2015
Chair: Bob Maguire - Managing Director The Carlyle Group
Panel: Poppy Allonby - Managing Director, Natural Resources BlackRock Investment Management
Michael Hafner - Head of Oil & Gas Investment Banking, EMEA UBS
Alastair Maxwell - Co-Head of Global Energy Goldman Sachs
Christof Rühl - Global Head of Research Abu Dhabi Investment Authority
Report: The Crude Downturn for E&Ps: One Situation, Diverse ResponsesMarcellus Drilling News
A report issued by consulting firm Deloitte with bad news for the oil and gas industry. The study reveals that 35% of "pure play" drillers (those who invest in and concentrate all of their efforts in a single shale play) are at "high-risk of slipping into bankruptcy in 2016." That's a total of some 175 companies nationwide.
As part of my advanced diploma in Energy Finance, I had to do investment analysis on various energy companies. Here is my final presentation, as of Dec 2015, on SM Energy.
Today's stock price for SM Energy is $28.08. I was headed in the right direction!
[Disclaimer: This is not a recommendation to buy or sell any shares within SM Energy.]
Current World Trends Impacting Commercial Real Estate InvestorsRCrenian
There are always changing trends affecting the Canadian investor’s portfolio. With 2014 coming to an end, here are three of the biggest trends we think that will continue impacting investors in 2015.
Steering into the Storm: O&G Economic OutlookWorkforceNEXT
A proverbial 100-year storm has disrupted positive trend lines the O&G industry once took for granted. Understanding the storm’s characteristics and path is essential for survival. High level economic realities of the new O&G paradigm will be explored, with a focus on oil markets, oilfield activity, and workforce trends.
In the Inflation Watch series, NAR Research focuses on the price level. We monitor measures of inflation that affect the business of REALTORS® and summarize their impact, highlighting areas of potential concern in a brief, polished presentation.
Following several years of relatively benign capital market volatility, it appears wider swings may finally be upon us. January produced multiple moves up and down in excess of 3%. Market Perspectives explores the meaning behind the volatility and how we may seek to take advantage of it.
Domestic small cap equities are trading at significantly elevated valuation levels. This month we highlight some of the key data points relating to this overvaluation.
Oil & Money 2015
Chair: Bob Maguire - Managing Director The Carlyle Group
Panel: Poppy Allonby - Managing Director, Natural Resources BlackRock Investment Management
Michael Hafner - Head of Oil & Gas Investment Banking, EMEA UBS
Alastair Maxwell - Co-Head of Global Energy Goldman Sachs
Christof Rühl - Global Head of Research Abu Dhabi Investment Authority
Report: The Crude Downturn for E&Ps: One Situation, Diverse ResponsesMarcellus Drilling News
A report issued by consulting firm Deloitte with bad news for the oil and gas industry. The study reveals that 35% of "pure play" drillers (those who invest in and concentrate all of their efforts in a single shale play) are at "high-risk of slipping into bankruptcy in 2016." That's a total of some 175 companies nationwide.
As part of my advanced diploma in Energy Finance, I had to do investment analysis on various energy companies. Here is my final presentation, as of Dec 2015, on SM Energy.
Today's stock price for SM Energy is $28.08. I was headed in the right direction!
[Disclaimer: This is not a recommendation to buy or sell any shares within SM Energy.]
Current World Trends Impacting Commercial Real Estate InvestorsRCrenian
There are always changing trends affecting the Canadian investor’s portfolio. With 2014 coming to an end, here are three of the biggest trends we think that will continue impacting investors in 2015.
Steering into the Storm: O&G Economic OutlookWorkforceNEXT
A proverbial 100-year storm has disrupted positive trend lines the O&G industry once took for granted. Understanding the storm’s characteristics and path is essential for survival. High level economic realities of the new O&G paradigm will be explored, with a focus on oil markets, oilfield activity, and workforce trends.
In the Inflation Watch series, NAR Research focuses on the price level. We monitor measures of inflation that affect the business of REALTORS® and summarize their impact, highlighting areas of potential concern in a brief, polished presentation.
Following several years of relatively benign capital market volatility, it appears wider swings may finally be upon us. January produced multiple moves up and down in excess of 3%. Market Perspectives explores the meaning behind the volatility and how we may seek to take advantage of it.
Domestic small cap equities are trading at significantly elevated valuation levels. This month we highlight some of the key data points relating to this overvaluation.
This month we attempt to look past the recent “headlines” affecting international markets and analyze the facts. As you will note, despite the volatility, we believe international investing still makes sense for long term investors.
Attached please find our monthly market perspectives piece for September. In light of the recent market volatility, we outline alternative investments, in particular market neutral investments. Currently, our preference is to use market neutral strategies for portfolio defense. In today’s market conditions, particularly in fixed income, traditional asset allocation strategies comprised solely of stocks and bonds may be challenged to provide an adequate balance of investment risk and return.
As we look ahead to 2015, we review some of the themes we highlighted in 2014. While some of our strategies played out well last year, some are still developing. We expect our valuation discipline will continue to serve as a valuable guide in the new year and beyond.
We examine the impact of foreign exchange fluctuations. More specifically, we explore the dynamics of the strength of the US dollar vs. currencies around the world and the impact this has had on asset values. There are a variety of reasons for the recent dollar strength, which we examine in more detail in the slides that follow.
Our May Market Perspective identifies and discusses the potential weaknesses in several traditional "safe" sectors within the equity markets-healthcare and utilities.
Biegel Waller Investment Advisory March 2014 CommentaryDavid Berger
In our March 2014 commentary we highlight the importance of corporate earnings to the strength of the economy and the equity markets. The value of revenue growth is discussed as profit margins have already been enhanced by cost cutting and lower capital spending.
As the debate about future economic growth continues, we provide selected excerpts from Q4 earnings transcripts. Quotes from CEO's of companies across multiple industries. Excluding energy and manufacturing, most CEO's indicated a positive growth outlook for their respective companies and industries.
Monthly Market Perspective - June 2016David Berger
The drivers of short-term market moves can be vastly different from those which underpin the cycles of longer-term market direction. This month we examine a variety of these factors.
Following an impressive bounce back from February lows, the durability of the current bull market remains suspect. The benefits of the recent rally appear limited to the large cap, defensive sectors of the market. In prior market cycles, this has portended that the latter stages of a bull market are fast approaching and as such, caution is warranted.
What the drop in oil prices means for the economy and office marketsJLL
Oil prices are below $65 per barrel for the first time since 2009, and energy producers across the globe are starting to panic. Lower prices will likely extend into 2015—bad news for energy companies and the downstream industries that support them, but good news for the U.S. economy and consumers.
We expect demand for real estate in the energy markets to weaken. Landlords and developers will feel pressure to secure and retain occupancy. But, the benefit of sustained low oil prices will fuel (pun intended) retail, residential, industrial and office demand across the United States overall.
Learn more about the energy industry, and our services for companies in the field, at http://bit.ly/1qSz2Li
This is the first edition of the Deloitte Outlook for oilfield services. The forward-looking report is based on in-depth interviews with 12 executives of oilfield services companies. Its purpose is to obtain companies’ views of their current business environment and where they think the market is heading, both in the short and long term.
A review of Q4 2015 corporate earnings reveals a significant slowdown in revenue and earnings growth. While these developments have been affected by the sharp decline in commodity prices,they may reveal early signs of recessionary conditions.
Mercer Capital's Value Focus: Energy Industry | Q1 2018 | Segment: Explorati...Mercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
Mercer Capital's Value Focus: Energy Industry | Q2 2022 | Segment: PermianMercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
Nach einem eher verhaltenen Jahr 2013 nahmen 2014 M&A-Transaktionen in der Öl- und Gasindustrie deutlich zu. Angesichts des weiter sinkenden Ölpreises und der Entscheidung der OPEC gegen eine Drosselung der Fördermengen werden 2015 noch intensivere M&A-Aktivitäten in der gesamten Wertschöpfungskette stattfinden. Diese strategischen Deals sind für die Unternehmen wichtig, um Wertzuwächse zu erzielen, sich für kommende Marktturbulenzen zu rüsten und die Wettbewerbslandschaft zu ihren Gunsten zu formen.
M&A activity in the o&g industry is at its lowest point in years. The number of deals in the first half of 2016 was 198, an "extremely low" number compared to what it has been in past years.
Mercer Capital's Value Focus: Energy Industry | Q3 2021 | Segment: BakkenMercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes a macroeconomic trends, industry trends, and guideline public company metrics.
Mercer Capital's Value Focus: Energy Industry | Q2 2021 | Segment: Explorati...Mercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
We think that we fully understand the costs/benefits of the financial engineering sold by brokers until we don’t. Potential for Vulnerabilities in MLPs by Bank MS => MLPs rely on capital markets to continuously grow (low r, high yield). (Potentially Overvalued) Overall MLPs carry a greater interest rate risk concentration than equities. (what doesn’t appear to be priced yet) and how man-made accumulations in the debt-commodity linked products can distort the Supply and Demand in the Commodities ?
Energy Vision Market Newsletter Vol 3 Issue 2 James Hatch
This update discusses short-term volatility in the natural gas market this summer and the potential impact of rising interest rates on gas exploration and production. Enjoy!
The latest annual energy risk report issued by the U.S. Chamber of Commerce. The report shows the U.S. has jumped up the list by two spots in the world's top 25 largest energy users. The jump up the list means the U.S. continues to improve its energy security.
Recent events in the Oil Industry, both at home and globally suggest--demand--a fresh look at the entire field of Oil, Petroleum By-Products, and Energy. Warmest regards, Slim.
S&P 500 earnings in the first quarter were significantly impacted by negative performance in the energy sector. In our Market Perspective we examine Q1 earnings excluding energy and observe reasonably healthy results.
This month we analyze first quarter earnings and dig into the impact of oil prices. As we have suggested, markets ultimately trade on earnings, and this quarter the picture has been clouded by the rapid decline in the energy sector.
Biegel Waller Investment Advisory Market Perspective David Berger
While the U.S. asset purchase program came to an end last month, we expect easy money policies around the globe to continue well into the future. We anticipate global leaders will remain focused on fighting deflationary forces with sufficient liquidity, which should help global asset prices.
Our April "Slides of the Month" discuss the recent run up in prices of dividend paying stocks. We identify favorable values in cyclically oriented stocks which are better positioned to benefit from additional economic growth.
Biegel Waller Investment Advisory December 2013 Slides of the MonthDavid Berger
Biegel Waller Investment Advisory's Slides of the Month for December, 2013 are now available. This month we examine international equity markets. We welcome your comments and the chance to discuss them further with you.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
1. Market Perspectives – December 2014
Experience Insight Impact
biegelwaller.com
Overview: While the S&P 500 sits near new highs, commodities (particularly oil prices) have fallen to multi-year lows. This month we attempt to explain the effects of the recent dramatic price movements in oil markets and how this may impact various interested parties.
2. Experience Insight Impact
Where Are We Now…
2
biegelwaller.com
•The price for West Texas Intermediate (WTI Crude) oil is down more than 30% this year, with much of the decline coming in the past few months.
3. Experience Insight Impact
Who Benefits from Lower Energy Prices?
3
biegelwaller.com
There are several groups which should benefit from lower energy prices:
•Consumers will see extra cash in their pockets as the holiday season approaches. As recently published by the Wall Street Journal, a quick rule of thumb is each one cent decline in the price of gasoline is worth approximately $1 billion in annual U.S. household consumption.
•Consumer discretionary companies should benefit from the additional cash consumers will likely have. Many retailers and restaurants should also benefit.
•Companies which rely on energy prices such as Airlines, and other transport-oriented companies.
•Manufacturing companies in general should benefit, but especially in the case of those which require oil and gas as a large input cost.
•Nations with big import needs such as China and Japan should see input costs decline.
4. Experience Insight Impact
Where Could Lower Energy Prices Hurt?
4
biegelwaller.com
While not as obvious, there are several ways in which lower energy prices may harm the economy and certain groups:
•Companies directly involved in the exploration and production of oil may have a tougher time justifying their cost structure, particularly in certain areas with more expensive, difficult to reach wells (for example deep-water drilling). Our domestic fracking industry in particular and all of the companies and jobs that rely on continued growth may slow or grind to a halt with prolonged low prices. Even pipeline companies, which may not have direct commodity exposure, may see contracts renegotiated. The break-even per barrel oil price for producers varies widely, but the range is between $40-80 according to the consulting firm Turner Mason. A prolonged downturn could cause production to shut down or in some cases, bankruptcy. The Saudi’s still possess the lowest per barrel cost at less than $10 per barrel.
•Alternative energy companies, which in most cases have much higher costs (such as solar companies), will fight to stay competitive.
•Countries which produce large amounts of energy risk fiscal and/or political destabilization (for example Russia and certain parts of the Middle East). Some countries require a minimum oil price in order to maintain a balanced budget (according to Deutsche Bank, Saudi Arabia is thought to need oil prices at $93, Russia at $102 and Venezuela at $112 per barrel in order to achieve balanced budgets).
5. •Our view for some time has been that domestic natural resource production would reduce energy prices over the long term.
•Many pundits are now calling for oil prices to fall into the $50’s per barrel or lower (many of those same pundits called for prices in the $90’s or higher just a few months ago).
•While we do not know the future direction of oil prices, we prefer to invest in companies which benefit from lower prices rather than the producers or companies with direct commodity exposure.
•We expect supply will remain robust as the domestic energy renaissance continues.
Experience Insight Impact
Where Do We Go from Here?
5
biegelwaller.com
6. Market Perspectives – December 2014
Experience Insight Impact
biegelwaller.com
Conclusion: We continue to limit exposure to companies with direct commodity exposure, instead favoring those which benefit from lower energy prices. We are closely monitoring the volatility for opportunistic situations.
6
7. Opinions expressed in this commentary may change as conditions warrant and is for informational purposes only. Information contained herein is not intended to be personal investment advice for any specific person for any particular purpose. We utilize information sources that we believe to be reliable but cannot guarantee the accuracy of those sources. Past performance is no guarantee of future performance; investing involves risk and may result in loss of capital. Consider seeking advice from a professional before implementing any investing strategy.
Experience Insight Impact
Disclaimer
7
biegelwaller.com