Dead flat week for the S&P. Brent and WTI were both up about $2 per
barrel, and natural gas was off $.10. E&P
equities were generally off with gas levered names fairing worst. For E&P companies overall, oil being up 2% is much more important than
gas being down 2% in my view, because oil comprises a much larger share of
E&P revenues over all. I’m surprised
that the sector under-performed so much with oil trading well. Chesapeake Energy was off BIG, partly due to
gas price, but mostly due to their poorly received spin off of their drilling
services division into a separately listed company. A couple of the mid-cap Permian companies were also off, but I'm not sure why.
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