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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (106624)	4/30/2021 1:37:37 PM
From: Goose94	Read Replies (1) \| Respond to of 203399

Crude Oil: has entered a multi-year bull market, given normalizing demand and structural supply challenges. With the successful vaccine rollout (in most areas of the world) we look for demand to reach pre-pandemic levels by the end of 2021. This will allow for OPEC to return the majority of their curtailed production back onto the market, thereby exhausting its spare capacity. The priority is the return of capital over growth and premium inventory exhaustion. The era of U.S. shale hyper growth is over; this is a watershed event for the sector given shale’s disruptive role over the past decade, which led to price wars, billions of dollars of shareholder capital lost, and artificially low oil prices. Looking forward as inventories normalize in the coming months and head into steep deficit, we see the need for either global offshore production growth (challenged given the ESG pivot of many) or lower demand via meaningfully higher oil prices ($100+). With oil trading at ~$65WTI and biased higher in the years ahead, energy stocks are ridiculously mispriced and offer a generational opportunity. Many are trading at less than 3x EV/CF, mid-teens free cash flow yields, and could buy back all of their outstanding shares and pay off all of their debt with just five years of free cash flow. Even though many stocks have rallied strongly this year, we see highly meaningful upside ahead. Eric Nuttall on BNN.ca Market Call Friday April 30th @ 1200ET