Monday, February 7, 2011

Various Updates

  • Callon Petroleum (CPE) has put out the actual 8-k for the announcement they made this morning: the Company expects to set its 2011 capital expenditure budget at $105 to $110 million. The Company anticipates spending $75 to $80 million on a 44 gross well drilling program in the Wolfberry play of the Permian Basin, with the balance spent in the Gulf of Mexico (approximately $8 million), on leasehold acquisition (approximately $10 million) and capitalized interest and general and administrative expenses (approximately $12 million).
  • December 2010 margin debt hit another new high.
  • Wood -> Coal -> Oil -> Natural Gas
  • Here is the only important thing that Bernanke said on Friday, and everyone missed it: "Moreover, diminishing investor confidence that deficits will be brought under control would ultimately lead to sharply rising interest rates on government debt and, potentially, to broader financial turmoil. In a vicious circle, high and rising interest rates would cause debt-service payments on the federal debt to grow even faster, causing further increases in the debt-to-GDP ratio and making fiscal adjustment all the more difficult." That indicates that my deflation thesis - whereby the Fed will stampede investors into Treasuries - may still be right.

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