Sunday, October 27, 2013

Pioneer Natural Resources: US Shale Oil play

The largest pure play on shale oil in the US is Pioneer Natural Resources. Pioneer Natural Resources has leveraged heavily to accumulate the largest position in the Permian Basin. Pioneer estimates that the Permian Basin has 50 billion barrels of exploitable oil, second only to the Gnawar oil field in Saudi Arabia in size. As long as the price of oil stays high, then Pioneer Natural Resources will benefit heavily from this domestic drilling location. The author will enter a long position at $211/share, at a $30B market cap.



Commodities stocks still have great prospects.

Lockstep said...

Goodness. Everyone knows shale is dead for a while. The author closed this position at $172.52.