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Headlines by Oil and Gas Investor 1 18 18


HELLO EVERYONE AND THANK YOU FOR JOINING US
FOR OIL AND GAS INVESTOR HEADLINES. I’M JESSICA MORALES. WE BEGIN WITH THE FIRST OIL AND GAS PUBLIC
OFFERING OF 2018 AND IT WAS A GOOD ONE. LIBERTY OILFIELD SERVICES HAS BEEN PLANNING
THIS MOVE FOR AWHILE AND EVEN PULLED BACK EARLY LAST YEAR WHEN THINGS WEREN’T LOOKING
GOOD BECAUSE OF LOW OIL PRICES. 2018 IS A DIFFERENT STORY. THE UPSIZED IPO OPENED AT $17 A SHARE ON THE
NEW YORK STOCK EXCHANGE JANUARY 12TH AND QUICKLY ROSE TO AROUND 21.80. BY THE END OF THE DAY, THE COMPANY MADE ABOUT
$216 MILLION. CALLING THAT DAY A MAJOR SUCCESS. “We’re very pleased. We had tremendous interest in the offering. So it allowed us to allocate shares to what
we thought would be the best long term owners and partners in Liberty and I think the market
got our story and we’re thrilled to have a bunch of new owner partners and thrilled
to be part of the institution that is the New York Stock Exchange.” Said Liberty Oilfield Services Chairman and
CEO Chris Wright. THE STOCK WAS TRADING AT $22.81 ON JAN 18TH. THIS NEXT TOPIC HAS BEEN ON THE MINDS OF MOST
PEOPLE….TAX REFORM. A RECENT FINANCIAL TIMES REPORT LISTED OIL
AND GAS PRODUCERS AS ONE OF THE HARDEST HIT. THAT’S BECAUSE OF NEW RESTRICTIONS ON TAX
RELIEF FOR INTEREST PAYMENTS. FOR MIDSTREAM MLPS, IT’S MOSTLY GOOD NEWS
THOUGH. BAKER BOTTS PARTNER AND DALLAS BASED DEPARTMENT
CHAIR IN TAXES STEVE MARCUS SAID IN A RECENT WEBINAR TO CLIENTS, QUOTE-“THE FIRST BIG
CHANGE, WHICH IS DEFINITELY A POSITIVE, IS A REDUCTION IN TAX RATE. THE CORPORATE TAX RATE’S BEEN REDUCED FROM
35% TO 21%.” HE WENT ONTO SAY IN PART, THE NEGATIVE SIDE
IS THAT INTEREST DEDUCTIONS ARE NOW LIMITED. THERE IS SOME WORRY THAT WITH RISING OIL PRICES,
SHALE OUTPUT PRODUCERS ARE PUMPING HARDER. WHICH COULD MEAN A NEW WAVE OF SHALE OUTPUT
UNLEASHED ON THE MARKET. IN FACT, THE EIA EXPECTS OUTPUT TO RISE EVEN
IN FEBRUARY. TAMAS VARGA AT LONDON-BASED BROKER PVM, SAID
QUOTE “THE HIGHER THE PRICES GO, THE HARDER SHALE PRODUCERS PUMP, AND AN OVERDUE CORRECTION
COULD BE UNDER WAY.” WE’LL CONTINUE WATCHING THESE DEVELOPMENTS
INTO NEXT MONTH. IN A&D NEWS, LINN ENERGY IS SELLING ITS INTERESTS
IN THE ALTAMONT BLUEBELL FIELD IN UTAH TO AN UNDISCLOSED BUYER FOR $132 MILLION DOLLARS. IT LOOKS LIKE THE COMPANY PLANS TO DO MORE
OF THIS IN 2018. LINN IS MARKETING ITS PERMIAN BASIN ASSETS
IN TEXAS AND NEW MEXICO AND THE DRUNKARDS WASH COALBED METHANE DEVELOPMENT IN UTAH. AND FINALLY, TWO NOTABLE INDUSTRY EXPERTS
ARE STEPPING AWAY. OIL TYCOON T. BOONE PICKENS ANNOUNCED HE WILL
CLOSE HIS ENERGY HEDGE FUND CITING HEALTH CONCERNS AND POOR FINANCIAL PERFORMANCE. THE AMERICAN PETROLEUM INSTITUTE ANNOUNCED
THIS WEEK, PRESIDENT AND CEO JACK GERARD WILL STEP DOWN WHEN HIS CONTRACT ENDS IN AUGUST. HE SAID HE IS READY FOR HIS NEXT CHALLENGE. THAT’S IT FOR THIS WEEK’S HEADLINES. YOU CAN READ IN FULL DETAIL ALL THE STORIES
I’VE MENTIONED AT OIL AND GAS INVESTOR-DOT-COM. I’M JESSICA MORALES, WE’LL SEE YOU NEXT WEEK.

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