Macron tells Biden that Saudis, Dubai Can Barely Raise Oil Output – #marketnews

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**Article Link**: [ https://www.reuters.com/world/macron-tells-biden-that-uea-saudi-can-barely-raise-oil-output-2022-06-27/](https://www.reuters.com/world/macron-tells-biden-that-uea-saudi-can-barely-raise-oil-output-2022-06-27/)

**Preface:** I've been posting about oil and gas since September2021 (specifically on Marathon Oil - MRO), and since then the industry has done tremendously well for a number of factors. But for those who are unaware, oil and gas stocks got kicked in the balls for 10 days straight in mid-June to the tune of 25-30% drop. I personally don't think it was justified given that it was primarily driven by panic selling on the fear of a recession and thus demand destruction of oil. **This presents a ridiculous opportunity to BUY THE DIP.**

**Thesis:** Even if there is slower demand growth of oil and gas due to a potential recession, there will still be demand that outstrips supply given that THERE IS NO MORE SUPPLY. **And thus we will have higher Oil prices for longer.** As Goldman's Jeff Currie put it, "The FED can't print commodities."

# So... What's the Best Play??? MRO - GO BABY GO

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# MRO - GO BABY GO

* **MRO breakeven is below $35/barrel** (one of the lowest in the industry)
* Practically all analysts and investment banks are predicting $100+ for the rest of 2022 and well into 2023 (and beyond)
* **MRO has a 50/50 oil and gas production split: With both prices at multi-year highs, they are making a KILLING** (and passing that cash onto their shareholders, see below)
* **MRO has committed 40% of Free Cash Flow to Stock Buy-Backs**
* **Their Board of Directors has approved $2.5 Billion in Buy-Backs**
* **That's currently 15% of their Market Cap**, this will have a huge impact on the stock price
* MRO was the #2 best performing stock in the S & P 500 in 2021
* **They are set up for an even better year in 2022 given the current commodity prices and market conditions**
* **MRO is up over 400% from October 2020**
* **Position:** I am long on MRO in a straight share purchase given that there will be volatility in the market over the next few months and the exact timing is difficult to predict. But if you have options that you feel good about, please share in the comments
* **\*\*Bonus** \- I haven't posted on MRO in a couple of months but I wanted to throw this information out there for those who are just thinking about the oil and gas boom that is happening right now. **The dip that MRO just experienced is an amazing entry point.**
* **Cheers and Happy Trading** \- MRO has more than doubled since I began posting on them in September 2021. I'm enjoying the hell out of the ride and I hope that you are too, cheers.

# MRO - GO BABY GO...

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