Who else thinks oil is bottoming now? (WTI <$36 now)

[Think2Succeed]

If you do the math, a gallon of water in the US costs now LESS than a gallon of oil and that is not sustainable people....I'm thinking to start shopping some oil/energy stocks...I don't know if this is the exact bottom but oil can't stay at these levels for long...Do you guys own or plan to buy any oil/energy stocks ? If so which ones are you eyeing ?

T2S

[qbeing1010]

I like DNR.   Tertiary recovery of oil from spent wells using CO2.   They used to have a decent dividend but recently dropped it.  I don't see how oil can go any lower, but I said the same thing months ago.  And last year.  I'm certainly no expert on this, just have been watching for a couple years.

[Think2Succeed]

Hmm I took a quick look at DNR and I saw only 12m cash and 3.4B in debt (and it's not profitable)...so be careful with that one. The ones I'm watching are CHK (also hade dividend and dropped it), TERP (solar company, profitable with >10% dividend but hurt by the oil industry and large debt) and a small cap one HERO ...this one came out of BK already and is now trading under cash, has no debt and has a big contract starting in July 2016 (worth $420 mil) on one of its rigs.

But ultimately they all depend on the price of oil...so our bet is still on oil recovery after all....then you can pick blindly almost any oil/energy company from these levels and make money

T2S

[postcalloff]

I have bought some CEQP. Company made a presentation this week comparing their numbers to their peers - said they should be 3 times higher. Also announced a $100 million unit open market buyback. Also announced $500 million funding by private backer that owns 20% of the company. Think about that. Also has a $5.50 per unit annual dividend! Are you kidding me?! $14.28 per unit right now

[Think2Succeed]

postcalloff,

CEQP certainly looks intriguing with that 38% annual dividend...I'll keep an eye on it. But I see they only have 9 m in cash with 2.5B in debt...doesn't that concern you ? Btw...where do they get the money for the $100m buyback ?

T2S

[postcalloff]

From First Reserve, their private backer. Take a look at the slide presentation on CEQP's website.

[Think2Succeed]

I see...thx

T2S