Weekly prices as of July 18, 2014

After missing last week’s update, I’m showing price changes from the past two weeks below.  There has been quite a big sell off in E&P companies over the period, especially those most exposed to natural gas, which was down almost 10% on the nymex.  Brent crude also continued to sell off as worries about Iraq supplies receded and Libyan production looks set to increase.  The Marcellus companies  have been totally walloped, as has Chesapeake and Southwestern, all quite dependent on gas sales.

The one bright spot has been Whiting, my biggest position.  The market cheered the takeover of Kodiak at almost no premium.   The combined company should be able to realize efficiencies in their drilling program and improve their return on capital.   Kodiak has a much smaller acreage position than Whiting, but much of it is very much in the core of the Bakken.  I hope to do some posts on Kodiak/Whiting and the Bakken in general over the next few days.