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  • LwC commented on Faisal Humayun's article 10-19 13:31
    Pioneer Natural Resources: Long-Term Value Creator
    In the recent past, I have discussed energy names that have strong fundamentals and have delivered strong stock returns year to date. The reason for...
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    LwC 10-19 14:31
    • “…the production cost declined to $8.36 per BOE in the second quarter this year.”


      Well, if PXD is able to produce at $8.36/boe, they must be making a lot of money.


      According to PXD’s Q2 10-Q:

      Reported LOSS from continuing operations before income taxes: $411,000,000

      Reported production for the quarter: 232,703,000 boe

      Calculated LOSS: $1.76/boe produced


      Reminds me of that old joke about the business owner who claimed that though he lost a little money on every sale, he made it up on volume. Lol.


  • LwC commented on Faisal Humayun's article 10-18 13:32
    Parsley Energy Has More Long-Term Upside
    Parsley Energy (PE) is one of my favorite names among the mid-size energy companies, and the stock has not disappointed from a returns...
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    LwC 10-18 14:32
    • “In the second quarter of 2015, the company’s operating cost per barrel of oil equivalent was $17.71. However, on a year-on-year basis, the operating cost has declined by 40% and stood at $10.62 per barrel in the second quarter.”


      $10.62 per barrel? How about $44/boe (including all reported costs)?


      According to PE’s 2Q 10-Q it produced 3,249,000 barrels of oil equivalent (boe) during the quarter and incurred Operating expenses of $105,236,000 to do it. That’s about $32/boe. Add another $12/boe for Other expenses  ($39,480,000/$3,249,000), and the average cost to produce goes to $44/boe for the quarter.


      Plains Marketing’s posted price on Oct. 17 is about $46. Parsley receives less than that since it costs to move oil from the wellhead to Plains’ designated delivery point.
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