Good morning, Johnny,
I have has CHRD and SM on my watch list since 2024.
SM just completed its merger with Civitas. I was hoping for a further price decline here in Q1 (seasonality weakness) - CHRD as well.
I own PR and really want to add more.
I bought NOG, PR and VTS in early 2025.
PR has by far excelled in price vs. the others.
PR is a likely candidate for an acquisition from a larger E&P IMO.
Their claim to fame is the lowest cost of drilling a linear foot of pipeline on thier contiguous acreage in the Permian. It is a Permian pureplay. They incorporate all of the best technology for a mid-tier player: dual fuel electricity generation and only now make 3 and 4 mile laterals.
In 2025 PR was the ninth largest producer of oil in the Permian basin.
I have 4500 shares with an average cost of $12.64.yielding 4.75%. In 2025 they went from a variable dividend to a 15 cent quarterly dividend - which I like and expect it to go up.
In 2024 they made a billion dollar acquisition from OXY (obtained from OXY's ANADARKO acquisition) PR was complemented in making an acquisition that was a BIG E&P like acquisition. The acquisition was for contiguous land of PR's. They promptly started only 3 and 4 mile laterals..
Dan Steffens thinks they are a prime candidate to be bought up.
I had sold off my highest cost shares and regret it now. I would love to build that position to 10,000 shares.
I had wanted to buy CHORD at a lower price. I love the $1.30 quarterly dividend, but it trades over $100.00.
With the Iran conflict (which I'm thinking gets kinetic on or before the next new moon on the 17th - US go to war in the dark).has been a boost to all E&P shares.
The timing to add to oil stocks is off for a while.
Oil stocks were at a very reasonable price level on April 9th of 2025. They all have done well since.
Usual price weakness takes place in the low volume Q1 of each year.
2026 may not be good timing with vortec cold waves and Iranian conflict.
If a regime change occurs, we might have an opportunistic window between now and mid April.
One good thing about the spike in oil we know, is the nonoperating oil companies (NOG and VTS) have surely hedged a large portion of their 2026 production. I'm thinking the dividends are more than safe at this point in time.
The one pipeline company I added to this month is Plains General Partner , symbol PAGP. Not to be confused with the Limited Partner Plains. PAGP is a C-Corp and distributes a Qualified Dividend. They are in the midst of selling their LNG business in Canada (hope to have the sale completed by the end of this quarter) They have not waited for funding and have bought 100% of the EPIC pipeline. I like pipelines and this pipeline connects the Eagle Ford and Permian Basin to the deep-water port in Corpus Christi Tx. It is more accessible than the Houston Ship Channel which has traffic restrictions due to its very bust traffic
PAGP has just recently increased their dividend to $1.67 a year. If bought at $20.00 or below, it yields out nicely at 8.25% - 8.50%. I'm trying to buy the stock by selling $20.00 puts and getting them assigned to me. If PAGP drops below $20.00 I'll be a direct buyer of the stock.
I like that PAGP is a pipeline Company located in Houston.
It is not a KMI, but they are going in the right direction. They also have pipelines going up to Canada and state they can now be an opportunistic buyer of heavy Canadia crude and ship it to the Midwest and/or Texas.
Like XOM's CEO says They have "ADVANTAGED ASSETS". It's a riskier bet than XOM, (by far) but that is my hope that they are thinking correctly and selling nonstrategic assets and buying assets they can improve on with modest Capex. They have an attractive plan, but it needs to evolve in a broader turn around plan. Meanwhile getting paid 8% plus while waiting does compound nicely.
Hope thet helps.
Meanwhile GO COHU. If Cohu keeps its run here, I'll be selling Cohu and buying more PR, CHRD, PAGP, NOG.and VZ. I have a full position of VTS now.
All in an attempt to build my Dividend Revenue Stream of Qualified Dividends
Bob |
