Locator: 52106DEVON.
Locator: 52106ARCHIVES.
For my extended family; not meant for general readership. See disclaimer.
Preliminary comment: this is what we've been seeing for the past week, oil companies reporting really good quarterly earnings, many of them increasing their dividends and/or buybacks. Link here. Shale operators have same concern.
Energy investors -- especially really-long (ten years or more) energy investors have been doing very well this past year -- but now energy investors have two issues: short term, Trump is a lame duck president, badly humiliated, with two oilmen in his cabinet; and, long term, many of the new folks elected to high office this past week hate (is that too strong a word?) the American oil industry and most reasonable folks can assume that to lower prices at the pump, these folks will need the help of the oil industry.
So, do energy investors add to their energy positions right now while share prices are low and oil companies are doing so incredibly well, or is this a trap? Short term it looks like an easy choice, but where will the oil sector be one year from now, or even "worse," where will the oil industry be in 2029?
I don't know, but about two years ago I pivoted from energy to tech. But then about a year ago, I pretty much stopped adding to my tech position (prices were just getting way too high). I added (very, very selectively) to my energy positions, but really not knowing what to do, parked most of my new money in three ETFs (SCHB, SCHD, and SCHG) -- again, not as investments but simply some place to park new money while trying to figure out where to go next (health-related, big pharma was one choice).
I think there's a good chance that this is a huge opportunity -- adding to my energy position -- but wow, I'm doing it very, very selectively.
Clearing off the desktop:
Devon Energy reported $2.01 billion in adjusted free cash flow for the third quarter of 2026, an increase of approximately 21% from the previous quarter, as the U.S. oil and gas producer prepares to accelerate share repurchases and concentrate investment in the Permian Basin.
EOG Resources reported an 89% increase in third-quarter 2026 net income to $2.78 billion, supported by record oil and gas production and stronger commodity prices, as the U.S. shale producer announced an 8% increase in its quarterly dividend.
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Disclaimer
Briefly:
I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken. I am inappropriately exuberant about the US economy and the US market. I am also inappropriately exuberant about all things Apple. See disclaimer. This is not an investment site. Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market. I am also inappropriately exuberant about all things Apple. And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution. I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom. Now, I've added Amazon. And QCOM. Nothing on this site should be seen as recommendations for the general public. On the other hand, I have no problem if members of my extended family "see" recommendations I might be making - but only members of my extended family, limited to my children and my grandchildren. Longer version here.
