Postcards: Christmas Tree Decorating While Eyeing Permian Stocks

Two years ago, I decorated a palm tree on Christmas Eve. This year, my wife has us listening to Christmas music in the humidity and decorating the new tree. My daughter won't stop lecturing me.                                                                                                                                                                                                                                                                                                                                                                                                                 Forwarded this email? [Subscribe here]() for more [Postcards: Christmas Tree Decorating While Eyeing Permian Stocks]( Two years ago, I decorated a palm tree on Christmas Eve. This year, my wife has us listening to Christmas music in the humidity and decorating the new tree. My daughter won't stop lecturing me. [Garrett {NAME}]( Nov 13   [READ IN APP](   Dear Fellow Expat: My wife decorates for Christmas very early. She shut down the house on Saturday to put up all the decorations. Tonight, we are “decorating the tree as a family,” says my daughter. She ordered me away from my computer on more than one occasion. She’s quite the general. The decision to decorate the tree came after she and I were doing math exercises in her playroom. She is still trying to learn how clocks work… and had a meltdown because she wrote “8:12” as the time for the following clock. Rookie mistake… Turning Our Attention to the Permian Oil prices have likely found a short-term bottom on the back of a key update from OPEC on Monday. The global oil cartel’s monthly oil market report showed that demand is set to remain robust into 2024. OPEC blamed speculators for the recent price decline, which we avoided when our Energy Signal went negative, and the oil-[counter-narrative played out as expected](. The report comes after the Energy Information Administration (EIA) - the research arm of the Department of Energy - projected that U.S. oil supply will rise and demand will fall. Markets are still reeling from Jerome Powell’s warning last week that the Fed may need to raise interest rates again since inflation remains sticky. Oil prices fell for three weeks as concerns about the Middle East and rising tensions between Israel and Iran have abated. Once again, [the focus is on the Permian Basin]( the world's most productive oil shale patch. According to the EIA via Bloomberg, Permian production will increase in November and December. Total output will reach a stunning 5.98 million barrels per day. Meanwhile, Helmerich & Payne have suggested that the U.S. oil rig count has bottomed out heading into the end of the year. Given the recent downturn in oil prices, we continue to look for a bottom on great companies with significant upside and terrific cash flow generation in the future. For clues, we look to insider buying among executives and board members. Over the last two weeks, we’ve seen strong insider buying in Energy Transfer ([ET]( Exxon Mobil ([XOM]( Enterprise Product Partners ([EPD]( Tellurian ([TELL]( and Black Stone Minerals ([BSM](. Here’s a list of insider buys in energy over the last 10 days. Source: EDGAR, SECFORM4.com All of these names are incredible companies with long-term appreciation upside and promise to generate reliable outcomes for long-term oil-and. gas investors. I’m still on the mend, so I’ll talk tomorrow about other ideas. Now, let’s see if we have any eggnog around the house… Stay positive, Garrett {NAME} Secretary of Defense You're currently a free subscriber to [Postcards from the Florida Republic](. For the full experience, [upgrade your subscription.]( [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2023 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()