As always... Let's start off with the Gif that keeps on Giving**... MRO GO-BABY-GO...
Nic Cage is giving himself Trigger Finger for HAMMERING the Nitro on the MRO Shelby
Here's another bonus Meme that's on theme, enjoy...
https://i.redd.it/k0u1gg1ng1t71.gif
The article is listed below, but first I'll answer the question...
So what's the best Play?
MRO
- MRO has a 50/50 oil and gas production split: With both prices at multi-year highs, they are going to make a killing (and pass the cash to their shareholders, see below)
- MRO has committed 40% of Free Cash Flow to Stock Buy-Backs = Over $1 Billion for Q4-2021
- When they pull the trigger on the buy-backs, the institutional investors will pour in
- That's currently 10% of their Market Cap, this will have a huge impact on the stock price
- MRO breakeven is below $35/barrel (one of the lowest in the industry)
- Bank of American and Goldman Sachs are predicting $80-100/barrel by end of 2021
- MRO paid down $1.4 Billion in long-term debt in Q1/Q2 of 2021
- MRO is the smallest Oil Company in the S&P 500 (but not a Micro Cap that could be acquired easily)
- MRO is up over 300% from October 2020
- Position: I am long on MRO in a straight share purchase given that there will be volatility in the market over the next few months and the exact timing is difficult to predict. But if you have options that you feel good about, please share in the comments
Here is additional Support/Analysis on why MRO is just getting started:
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Article:
Brent Crude Nears $85 As Global Energy Crisis Worsens
- Brent crude nears $85 as the global energy crunch continues to worsen.
- China’s coal and power crisis worsened over the weekend, after sixty coal mines in the country’s top coal-producing region were forced to shut amid heavy rain, flooding, and landslides.
- The tighter coal and natural gas markets globally raise the outlook for gas-to-oil switch, which is set to boost oil demand.
Oil prices extended Friday
... keep reading on reddit ➡
https://preview.redd.it/feqz0lorq9481.png?width=1080&format=png&auto=webp&s=6c8ed041fcebe839107c960cfee7b01646bfb952
Brent oil futures fell 0.3% to $75.23 a barrel on Wednesday following strong gains earlier in the week, amid worries around the new Omicron variant and its economic implications. The market is also focusing on Iran nuclear talks and weather in the northern hemisphere winter. Meantime, tensions between Moscow and Kyiv grew, with US President Joe Biden warning Russian President Vladimir Putin that he could face tough economic sanctions from the West, including the disruption of the Nord Stream 2 gas pipeline to Europe if Russia invades Ukraine.
Source: Trading Economics
Yellen the Felon assures us inflation is "returning" to 2 percent in the 2nd half of 2022. This is one lie on top of another, since real inflation hasn't been 2 percent since well before the Fed took its money printing into hyperdrive in 2008.
https://www.aljazeera.com/economy/2021/10/25/oil-prices-cross-86-to-highest-level-since-2018
Oil prices have more than doubled over the past 12 months as the global economy rebounded from the pandemic.
