The Cashflow Memo
In the latest episode of the Telltales investing podcast, hosts Hunt Lawrence, Jason Wallace, and Mike Nicoletti delve into a range of topics, from the intricacies of the energy sector to the valuation and technological advancements of Nvidia.
World Oil Supply/Demand
The hosts begin by examining the current state of oil supply and demand. Despite global issues, demand remains robust, particularly in China. The conversation highlights that the oil market's stability hinges on the production decisions of Saudi Arabia and Abu Dhabi, which continue to restrain output.
US Gas Demand/Supply
The discussion shifts to the natural gas market, where supply constraints are the primary concern. The hosts note that while demand for liquefied natural gas (LNG) and power remains strong, the production of dry natural gas has significantly increased, leading to a supply glut and historically low prices.
US Government Revenues and Expenses
The podcast touches on the political landscape, mentioning the House of Representatives' deadlines for expenditure bills and the implications of a potential 1% cut in all spending, including defense, as part of a continuing resolution.
Energy Earnings Roundup
The hosts provide an earnings roundup for various energy companies, discussing the performance and valuation of gas companies like Antero, EQT, and Chesapeake, as well as oil companies such as EOG, Magnolia, and Diamondback. They explore the strategic moves within the industry, including Diamondback's acquisition of Endeavor and its implications for market control.
Midstream Companies
Midstream companies like Kinder Morgan, Enterprise Products Partners, and Energy Transfer are analyzed, with the hosts concluding that these companies are fairly valued but face challenges in reducing debt due to their dividend commitments.
Major Oil and Gas Players
The conversation covers the performance and prospects of major oil and gas players like Exxon, Chevron, ConocoPhillips, Occidental Petroleum, and Cheniere, with a particular focus on their free cash flow multiples and dividend yields.
Nvidia Earnings
A significant portion of the episode is dedicated to Nvidia's earnings and valuation. The hosts question how Nvidia's market capitalization surpasses that of Amazon and Alphabet, given its relatively lower free cash flow. They discuss Nvidia's sales growth and the competitive landscape, including the emergence of AI chip startups like Groq.
ARM's Strategy and Valuation
The episode concludes with a discussion on ARM's strategy to double its prices and the potential impact on its valuation and customers, including major tech companies like Nvidia and Alphabet.
COMPANIES MENTIONED
Antero Resources Corporation: AR 0.00%↑
EQT Corporation: EQT 0.00%↑
Chesapeake Energy Corporation: CHK 0.00%↑
EOG Resources, Inc.: EOG 0.00%↑
Magnolia Oil & Gas Corporation: MGY 0.00%↑
Permian Resources Corporation: PR 0.00%↑
Diamondback Energy, Inc.: FANG 0.00%↑
Kinder Morgan, Inc.: KMI 0.00%↑
Enterprise Products Partners L.P.: EPD 0.00%↑
Energy Transfer LP: ET 0.00%↑
Western Midstream Partners, LP: WES 0.00%↑
Exxon Mobil Corporation: XOM 0.00%↑
Chevron Corporation: CVX 0.00%↑
ConocoPhillips: COP 0.00%↑
Occidental Petroleum Corporation: OXY 0.00%↑
Cheniere Energy, Inc.: LNG 0.00%↑
Nvidia Corporation: NVDA 0.00%↑
Alphabet Inc.: GOOGL 0.00%↑
Amazon.com, Inc.: AMZN 0.00%↑
ARM Holdings: ARM 0.00%↑
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