HCLP was up more than 10% today which is of course a very generous reprieve. My book was up just under 2% today which is…um 40% more to go.
For sure, the fastest path to redemption lies in the irons that bound me…the oil sector. If I am going to get a big 50% year (which is not uncommon around these parts, actually), then these oil names are definitely one possible, tantalizing path.
I need to have self control though. I cannot just start loading back up at every little blip.
HCLP numbers were hot but I think that has more to do with men and women rediscovering that, yes, actually there are specialty plays within the oil space that are insulated (at least momentarily) from price shock.
There was never a great reason to sell off HCLP so hard, since as you will recall their operation grew tremendously and it was all contractually accounted for.
Actually, a iBC regular wrote up a rather excellent analysis in the comments of my last post. You should read it here.
To stand, 60% cash and searching like a hawk for the next kill.
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Thanks CT. HCLP CEO says – “While there are headwinds entering 2015, the industry remains focused on efficiency, quality and execution,” said Robert E. Rasmus, Co-Chief Executive Officer of Hi-Crush. “Over 88% of our and our sponsor`s 2015 production, or 6.6 million tons, is committed under long term take-or-pay contracts. While the volatility in the market continues, we are confident in the strength of our balance sheet, the quality of our assets and the solid foundation of our relationships. We continue to be the low-cost leader in the sector and we are prepared for the challenges and looking forward to the opportunities in 2015.”
I was skeptical when some people were pointing to the take or pay contracts as reasoning these sand plays shouldn’t be down so much, but the fact that the CEO is still talking about those contract at $50 oil says to me they are secure and so is SLCA’s. Screaming buys anyone?
ya djmarcus spelled it out there very cool. I need to listen to that cc. Here’s the link:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=251388&eventID=5184283
I don’t think that 10% had anything to do with earnings. I had owned one oil transport up 9% on no earnings release.
Canadian Oil Sands was up 20% today and 20% each of the last 2 days. Poor quality company that just cut it’s dividend again set it off.
This was all shorts and there are a lot in the energy sector.
None of these companies are making money unless oil gets over 60 and even then FCF will be poor, really need 80+.
@income trader, it does look like a short covering rally. the garbage went up the most. but I do believe that with increased sand per drill hole , and firm contracts that hclp does just fine. I’d be less bullish about the drillers, firm contracts or not.
Oh yeah, I am not arguing that yesterday was a pivotal moment. I just think certain plays have more staying power than others.