1. Saudi Arabia may go broke before the US oil industry buckles (link here) - interesting macro story especially given the volatility in the oil market recently...and this comment too:
Saudi Central Bank: "It is becoming apparent that non-OPEC producers are not as responsive to low oil prices as had been thought"
2. A day of interesting resource sector results. The first one I wrote up was Randgold Resources which I still like:
...but even despite recent challenges like slip sliding gold price the underlying key metrics at the company continue to shift in the right direction (including a record quarterly production and attractive cash costs).
3. As for Rio Tinto I liked the income maintenance and cost control focus:
the bigger point is that Rio Tinto are a survivor...and one which currently pays a 5%+ dividend yield including an interim yield that was increased and a buy back policy that was continued:
4. Apache exhibited similar characteristics as discussed here:
My view: to complement the mega cap exposure in the space with their dividend focus (link here) Apache is a good choice. For me the conference call reiterated they have the experience and acumen to see through the current conditions and ultimately prosper and move materially above the current decade plus share price low is clear. As with probably any other energy sector call over the last year I have been wrong to buy/build in Apache shares but you can only invest going forward - and this is no time to be selling their shares in my view.
5. Interesting on the last week of the Q2 earnings season...all the things to blame!