Chesapeake provides the blueprint for energy companies in 2019 focus on margins gas bloating diarrhea

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I have researched stocks for 22 years, starting fresh out of college at Lehman Brothers and then moving to Donaldson, Lufkin and Jenrette. At DLJ I was e seva power bill payment a Senior Analyst following US auto parts companies before relocating to London to originate DLJ’s European Automotive coverage and then moving to UBS. I had a decade of sell-side experience, attaining the CFA designation. After years of growing my own portfolio, I founded Portfolio Guru LLC three years ago. I construct portfolios for my clients on a fee-only, separately-managed basis and write about small stocks in my newsletter, MicroCap Guru. My work is also featured on Real Money, the premium portal of TheStreet.com. The Sanskrit root of Guru combines dispel and darkness. I invest solely for individuals, and for them I try to dispel the darkness that emanates from Wall Street. My friends enjoy poking fun at my nom de stock, and when I am not Guru-ing, I enjoy spending time with them, outdoor v gashi activities, and sampling NYC. I can be reached at jim@portfoliogurupost.com.com Contact Jim Collins

When valuing energy companies the terminology used is often somewhat obscure versus the key concepts learned in basic securities analysis. PUD, PDP, EBITDAX and MMBOEPD are often used to indicate the value of productive reserves and the cash flow derived from those reserves. Actually, though, energy companies can be valued using the same methodology as companies in other industries. This is a much more up electricity bill payment online common acronym–UPC–meaning units, price and cost. This is the tried and true method used by Fidelity to value companies in a variety of different industries, and it is certainly applicable to oil and gas companies, especially for credit analysis.

Chesapeake shares have rallied nearly 10% in morning trading, as fourth quarter results easily beat Street estimates. What was striking to me, though, wasn’t the bottom line, but the first page of the financial section of Chesapeake’s results presentation. Chesapeake management chose to highlight a measure of operating margin as opposed la gastronomia to focusing on gross production figures or in-house estimates for future commodity prices. Chesapeake is an energy company, so the nomenclature is never simple, but management’s choice to display a graphic on Adjusted EBITDA/BOE was a telling one.

Chesapeake’s portfolio is heavily weighted toward production of natural gas and 76 gas credit card login natural gas liquids–82% of production in 1Q18–although oil’s weighting in Chesapeake’s production mix is expected to increase to 26% by year-end with the addition of Wildhorse Resources, a South Texas operator Chesapeake acquired last year. So, even without the upside that comes with a potential for a boom in oil prices, Chesapeake has been able to improve margins by focusing on cost.

That will be the key online electricity bill payment driver of energy industry returns in 2019 and I will revisit it in future Forbes columns. The markets, especially the equity markets, tend to be laser-focused on the commodity price on a macro level and the volume of production on a micro level. Drill, baby drill is what got the U.S. energy industry into trouble in 2014, however, and production now is much higher than it was at the last peak. In fact this week’s EIA Weekly Petroleum Status Report showed the U.S produced 12.1 million barrels per day of last week, an all-time record.

So, front-month oil futures contracts will continue to fluctuate based on rumors about OPEC and front-month natural gas prices will fluctuate based on incredibly inaccurate forecasts for the weather, especially in the Northeast. Those factors are unlikely to change, but when the fundamentals diverge from the conventional wisdom gas relief for babies home remedy, buying opportunities arise.

I think the focus on margin optimization by Chesapeake and its peers make this group too cheap to ignore. After a horrible 2018 (total return electricity voltage in usa of -18.1%), and a lackluster 2017 (-1.0%), energy stocks–as measured by performance of the Energy Select SPDR, XLE–have outperformed the SP 500 thus far in 2019. XLE has risen 15.5% versus the 11.6% gain in the overall market, and I believe that outperformance will continue.

I have researched stocks for 22 years, starting fresh out of college at Lehman Brothers and then moving to Donaldson, Lufkin and Jenrette. At DLJ I was a Senior Analyst following US auto parts companies before relocating to London to originate DLJ’s European Automotive coverage and then moving to UBS. I had a decade of sell-side experience, attaining the CFA designation. After years of growing my own portfolio, I founded Portfolio Guru LLC three years ago. I construct portfolios for my clients on a fee-only, separately-managed basis and write about small stocks in my newsletter, MicroCap Guru. My work is also featured on Real Money, the premium portal of TheStreet.com. The Sanskrit root of Guru combines e sampark electricity bill payment dispel and darkness. I invest solely for individuals, and for them I try to dispel the darkness that emanates from Wall Street. My friends enjoy poking fun at my nom done with electricity tattoo book de stock, and when I am not Guru-ing, I enjoy spending time with them, outdoor activities, and sampling NYC. I can be reached at jim@portfoliogurupost.com.com Contact Jim Collins

When valuing energy companies the terminology used is often somewhat obscure versus the key concepts learned in basic securities analysis. PUD, PDP, EBITDAX and MMBOEPD are often used to indicate the value of productive reserves and the cash flow derived from those reserves. Actually, though, energy companies can be valued using the same methodology as companies in other industries. This is a much more common acronym–UPC–meaning units, price and cost. This is the tried and true method used by Fidelity to value companies in a variety of different industries, and it is certainly grade 6 electricity worksheets applicable to oil and gas companies, especially for credit analysis.

Chesapeake shares have rallied nearly 10% in morning trading, as fourth quarter results easily beat Street estimates. What was striking to me, though, wasn’t the bottom line, but the first page of the financial section of Chesapeake’s results presentation. Chesapeake management chose to highlight a measure of operating margin as opposed to focusing on gross production figures or in-house estimates for future commodity prices. Chesapeake is an energy company, so the nomenclature is never simple, but management’s choice to display a graphic on Adjusted EBITDA/BOE was a telling one.

Chesapeake’s portfolio is heavily weighted toward production of natural gas and natural gas liquids gas oil ratio–82% of production in 1Q18–although oil’s weighting in Chesapeake’s production mix is expected to increase to 26% by year-end with the addition of Wildhorse Resources, a South Texas operator Chesapeake acquired last year. So, even without the upside that comes with a potential for a boom in oil electricity for refrigeration heating and air conditioning 9th edition answers prices, Chesapeake has been able to improve margins by focusing on cost.

That will be the key driver of energy industry returns in 2019 and I will revisit it in future Forbes columns. The markets, especially the equity markets, tend to be laser-focused on the commodity price on a macro level and the volume of production on a micro level. Drill, baby drill is what got the U.S. energy industry into trouble in 2014, however, and production now is much higher than it was at the last peak. In fact electricity for dummies amazon this week’s EIA Weekly Petroleum Status Report showed the U.S produced 12.1 million barrels per day of last week, an all-time record.

So, front-month oil futures contracts will continue to fluctuate based on rumors about OPEC and front-month natural gas prices will fluctuate based on incredibly inaccurate forecasts for the weather, especially in the Northeast. Those factors are unlikely to change, but when the fundamentals diverge from the conventional wisdom, buying opportunities arise.

I think the focus on margin optimization by Chesapeake and its peers make this group too cheap to ignore. After a horrible 2018 (total return of -18.1%), and a lackluster 2017 (-1.0%), energy stocks–as measured by performance of the Energy Select SPDR, XLE–have outperformed the SP 500 thus far in 2019. XLE has risen 15.5% versus the 11.6% gain in the overall market, and I believe electricity voltage in norway that outperformance will continue.