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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

Stuart Turley: [00:00:00] President Trump had to look at Zelensky and say, we’re ending our support in a closed session with everybody around looking at it. President Putin has offered his minerals. He wants to do business with the United States and that is the only way we will see an end to this war. If it’s done correctly, we may end up with a new trading partner of Russia. Go figure this out. Russia, encouraged by President Trump’s talk of economic deals, could flow a peace agreement, drawing up a list of projects and assets officials might hope interest the U.S. According to people on Moscow Times. [00:00:38][38.9]

Michael Tanner: [00:00:46] What’s going on, everybody? Welcome into the Monday, April 28th, 2025 edition of the Daily Energy Newsbeat Standup. Here are today’s top headlines. First up, UK looks to woo investors impacted by Trump tariffs. Next up, net zero realism is growing with the UK government increasingly isolated. We’ll come back to the US as the US eyes post-war joint business. With Russia in energy and metals. And finally, new study that’s out, California gas prices driven by policy not profiteering. Who would have thought that? Stu will then toss it over to me. I will quickly cover what happened in the oil and gas markets. Price is fairly stable week over week, a little bit on tariff fallout. And we did see rig count, some interesting stuff going on with the rig counts. I got some thoughts on what we’re seeing there. And then finally EQ team goes ahead and dips its toe into the M&A market. And buys up Olympus energy. So we will cover all that in a bag of chips guys, as always. I am Michael Tanner joined by Stuart Turley. [00:01:54][67.2]

Stuart Turley: [00:01:54] Where do you want to begin? Hey, Michael, let’s start with our buddies over there in the UK. You can’t buy this kind of knucklehead kind of stuff going on here. UK looks to woo investors impacted by Trump tariffs. Michael, there’s about four different key points in here. Following the policies in the U S the UK is actively seeking Michael actively seeking to fill the market gap by encouraging companies. Previously invested in the US investments to consider Britain instead. Prime Minister Stommer has emphasized the UK’s commitment to low carbon future. You take a look at what’s going on in the UK energy policies and marketing. They are about as dumb as it possibly can get. They have lost so much money. They have wasted all this money. And here’s another quote. The government is acting now with muscular industrial policy. I fell apart laughing at that one. Is that because of its muscle memory that they’ve forgotten and have Biden amnesia? I’m not sure. We’re paying the price for our overexposure for many years, the rollercoaster of international fossil fuel markets, leaving the economy and therefore people’s business household budgets. But Michael, this is the same thing, same country. That is forcing oil companies to go out of business and they want low cost energy? It doesn’t make any sense. [00:03:23][88.8]

Michael Tanner: [00:03:24] Yeah, both those things really stand at odds with each other, at least right now. I mean, you show me a cheap renewable farm. I’ll show you thousands that aren’t. We covered last week how tax credits being taken away from offshore wind. And now all of a sudden, nobody’s building them anymore. So yeah, exactly. Rote row. They pulled a quick Scooby on that one and got out of there. You know, do I think people are now all of a suddenly going to be flying into the United Kingdom for investment? No, I don’t think so. Do I think they’ll get a some investment? I mean, I think as obviously with the way things are shaking, you are going to see money, money move a little bit. Is that more of an attack on Trump than it is maybe a sound business decision? It remains to be seen. But if this quote, Hey, we’re going to, you know, from the PM over there, starmer, Hey we’re gonna bring in new investment by focusing on low carbon future. Good luck. Good luck. Rats of r- [00:04:20][56.6]

Stuart Turley: [00:04:20] Let’s go to the next story with net zero realism is growing in the UK government increasingly Isolated this is a kind of a co-story with this one I got tickled at this one net zero skepticism grows last year This is from our buddy that we talked about last week on the show as well, too. He’s an outstanding author and I’m rolling all the way down here to the let’s see Alexius Aldosius Uxus facts do not cease to exist because they’re ignored I love the way that that was frozen this is from the folks over there at what’s logic and and when you sit back and take a look here’s a quote from Chris Wright I find it sad and ironic that once mighty steel and petrochemical industries of United Kingdom. Have been displaced to asia the same products that will be produced with higher greenhouse gasses emissions then loaded on a diesel powered ship back to the united kingdom the net result is higher prices fewer jobs for uk citizens higher and global greenhouse gas emissions and all of this is a climate policy chris wright way to go chris right again hits it out of the [00:05:35][74.7]

Michael Tanner: [00:05:36] No, he really does. This this really feeds right into the last story we talked about, you know, from the standpoint of, yeah, I love this. This is this is a quote from the article surveyed by British Gas in late 2024 revealed that Brits were four times more concerned about the cost of living than climate change. OK, that’s how the people feel. Yet the government wants to shove this net zero stuff down people’s throats. It’s almost like the government there isn’t working for the people. almost like we established a new country in order to get out from that type of group think 300 years ago. [00:06:12][35.9]

Stuart Turley: [00:06:12] It’s, it’s absolutely mind boggling that they’re now arresting people for mean tweets. And this is going to actually going to go along with the new phrase thing that’s also going along with, the EU and the UK is that there are going to be major challenges coming up with regulatory issues in net zero, and they’re trying to make claims. So they can shut down United States businesses. That’s gonna be coming soon. Unbelievable. Let’s go to the next story here since we’re having some serious fun around the world. USI’s post-war joint business with Russia in energy and minerals. I get really tickled at this whole story. President Trump sit in the middle of the Vatican with President Zelensky, who’s no bigger than a flying squirrel, Rocky the Flying Squirrel and Bow Winkle. In the Vatican has a very unique picture. I found that very interesting that President Trump had to look at Zelensky and say, we’re ending our support in a closed session with everybody around looking at it. President Putin has offered his minerals. He wants to do business with the United States. And that is the only way we will see an end to this war. If it’s done correctly, we may end up with a new trading partner of Russia. Go figure this out. Russia, encouraged by President Trump’s talk of economic deals, could flow a peace agreement, drawing up a list of projects and assets officials might hope interest the U.S. According to people in Moscow Times. The envoy Steve Wyckoff met with President Putin in Moscow on Friday for talks. I think this is very important, this is a quote, Russia’s trade with China is currently about 70 fold larger than its trade with the U.S., so that naturally limits the available options, said Maria Sengolia, the senior fellow at the Washington-based Center for Strategic and International Studies. The White House could adopt a more flexible approach to sanctions and enforcement potential allowing us companies. To secure meaningful stakes in Russia energy ventures. I think this is really important if we take a look at critical minerals. It’s not the critical minerals, but it’s actually the processing and or refinement that I think would be the best thing to do for Russia and the United States to work together. It’s my personal opinion on that. [00:08:49][156.8]

Michael Tanner: [00:08:49] Yeah, I think there’s a lot of different layers to this to say that, you know, us getting into bed with Russia from the investment standpoint is a great thing. I think overstate some of the challenges that we would have. Obviously, you Russia is a large energy exporter. If Trump truly does want to bring down energy prices, getting Russian fuel and Russian gas back onto the market is a good thing. Obviously, there is some tensions from a… You know, geopolitical strategy standpoint and a national security standpoint, you know? I think to fool ourselves and think Russia is our friend is also a misservice. Russia is a, a convenient partner. And it’s a little bit of like the enemy of the enemy is my friend. It seems to be Trump has made Zelensky out to be the enemy. And now guess what? You end up finding yourselves aligned with people who may not have your best interests at heart, but you have a common enemy in what’s going on in Ukraine. [00:09:44][54.9]

Stuart Turley: [00:09:45] Can I say that Zelensky may have done that to himself? I mean the man owns a new ski resort in France. His wife owns a $15 million burgundy. She just bought a $2 million dress from Princess Diana. Where are they getting that kind of money? Oh, the U.S. Taxpayers. [00:10:04][19.1]

Michael Tanner: [00:10:04] Yeah, now we could also go down the road of the US is probably the reason that Zelinski is in power because we came in with the CIA and overthrew the government. So we could keep going farther back and eventually saying this war is probably our fault. And so if we’re not going to go in there and support somebody and at least attempt to do something, we’re not even standing up for the own regime that the CIA back in 2014 decided to slip in. So we’re going on. The point of the matter is I think there’s a lot of other stuff going on here. I do think if, specifically… What Steve Witkoff has brought up specifically is those interest in working with Russia on those energy projects that are in the Arctic. There’s a lot of stranded gas going on. Now Trump has come out and said he is not and they’ve been very clear that we’ve not lifted energy bands yet. So I think they’re, they’re ironically, if they wanted to crush natural gas prices and crush oil prices, they’d come out. And just say, we have lifted the band that would drive down. You’d see a five, $6 drop in the price right there. I do think it’s there’s a lot to unpack here, you know, do I really think something is going to happen? I intimately know. But I mean, something needs to happen at some point. You know, we do know that there’s a lot of oil and gas, you know, companies in the U.S. That lost a lot of longstanding oil and gas infrastructure in Russia. We know that ExxonMobil lost the Sakhalin-1 as it was basically just declared a Russian entity and all that stuff. So I think it’s going to be very interesting. And [00:11:29][85.1]

Stuart Turley: [00:11:30] this goes back to my comment, Michael, is that I don’t know that we need to do joint oil and gas deals. And as we talked about last week, I don t know that having President Trump in the United States act as the middleman for all natural gas and managing the Russian assets in the EU is a good thing. I think it’s a way to get him to the table. But I sure don’t want to be a middle of a gas policeman. No gas for you today because we have to negotiate with Putin. No, I don’t want to get in the middle of that mess. Holy smokes, Batman. [00:12:04][34.1]

Michael Tanner: [00:12:05] Alright, let’s go to our favorite state, California. [00:12:07][1.8]

Stuart Turley: [00:12:08] Oh my gosh, speaking of… Speaking of Batman, California… We need to get Mr. Freeze going over and going over to the California state capital. Holy smokes. Oh, you bad man. California gas prices driven by policy, not profiteering. This one is a great story. And I really liked it. This is from Robert Rapier and he I’m visiting with Mike Umbro and Robert Ronald Stein this next week on this very big issue. California’s high gas prices are largely due to environmental regulations, high taxes, declining state oil production, refinery closures. A recent study by Professor Michael Misch at USC found no evidence of corporate price gouging contributing to the high cost of California in California. California’s aggressive long-term policies such as banning international combustion in engines. And impact investment in fuel infrastructure contribute to high gas prices. This is not only stupid this is absolutely… Michael coming into my my neighborhood I see a sign and it says there’s a big deer right on top of it and then you have a child underneath it and it said slow children. I always wonder is it deer slow children or is it slow children? Do we have a slow governor that has no idea how to put in. Policies for long term. This is absolutely horrific. Is it slow children, or is it low children? I don’t know. [00:13:45][97.4]

Michael Tanner: [00:13:45] No, it’s, I guess the only way to say is it’s definitely policy. I mean, you’ve been on this train for years now, legislation through regulation, or excuse me, regulation through legislation. [00:13:58][12.7]

Stuart Turley: [00:13:59] No, legislation through regulation, you were right the first time. Whatever it is. [00:14:03][3.8]

Michael Tanner: [00:14:02] Whatever it is, apples, tomatoes, tomatoes potatoes, potatoes, the point is the problem is, and the funny part is this study was done by USC, who isn’t a bastion of conservative thinking, if you do say so myself. So I find it, you know, ironic that they’re coming out and saying, well, it’s probably the regulations. Like, well thanks, everybody knew that already. And how much was wasted on this study? Where was Doge to get this study out? [00:14:29][26.9]

Stuart Turley: [00:14:30] Who knows there’s so much waste in California. It’s actually pathetic. Yeah, but it’s just me [00:14:36][6.1]

Michael Tanner: [00:14:36] All right. Well, let’s jump over and quickly talk oil and gas finance, guys. But before we do that, let us go ahead and quickly pay the bills. As always, thank you for checking us out here on the world’s greatest website. Energy Newsbeat dot com. Stu and the team do a tremendous job making sure that website stays up to speed. Everything you need to know to be the tip of the spear when it comes to the energy and the oil and gas business, check out the description below. For all links to the timestamps, links to the articles, as always hit the link to our Substack, theenergynewsbeat.substack.com. A great, great place to get that done. We are excited to, we’re going to be launching a new quarterly series called the State of the Market Address, where we’re gonna be doing some live video here at the end of May, covering everything that’s happened in the quarter and really trying to tie and make a cohesive message for what’s going on in the business, Stu and I are really excited to roll that out. Look out for that dropping on LinkedIn soon. So you can get signed up and not miss that. Also guys, we want to say thank you to our friends over at Reese energy consulting for making this podcast possible. You know, if, if you’re in the mid, if your at all within surrounded or touch the midstream space and you’re not working or talking with Reese energy consulting, you’re doing yourselves a disservice. If you’re an upstream company and you not working with a marketing company, I promise you your first purchaser. Gouging you you’re leaving two three four dollars per barrel on the table You’re leaving twenty thirty fifty cents of MCF and in these in these price environments Every dollar and every penny matters on those contracts So give them a call if you’re in the midstream space looking to spin up a new LNG facility Looking how to get jet fuel from Europe back here to the United States or vice versa They are the go-to folks that can make it happen guys Reese energy consulting.com We love them over there Tell them that Energy Newsbeat sent you and they will give you a 45,000% discount on all of your services. Just tell them that Newsbeat send you. And finally guys, it is never too early to start thinking about your 2025 investment portfolio and more importantly figure out how you can become Billy Bob Thornton from Landman if you are interested at all in getting into the oil and gas space via direct energy investments. We have all the information on how you get started. There’s some great reasons why you should do that. One, portfolio diversification, tut, you know, dip your toe into the oil market, become Billy Bob Thornton from Landman. Give yourself a really sweet tax deduction. Give yourself some nice monthly distributions. And as always, remember, you can show up to a party and tell your friends that you are now Billy Bob Thorton or Monte from Landmen, whichever, you now, whichever one you prefer, whichever you prefer guys. Check that out. Invest in oil.energy newsbeat.com or hit that link in the description below and we will get you all the information and access to get your investing dream started. Stu, let’s jump over there and look at the markets though. On Friday, S&P was up about seven tenths of a percentage point. Nasdaq up a little bit more, up about 1.4 percentage points. You know, fairly ripped this weekend, you know, from the Nasdax standpoint. We did see two and 10 year yields fall about about a percent and then 1.3 percentage points of dollar index up three tenths of a percentage point Bitcoin up to $94,000. So it’s been on a tear since tariffs that, you know, I think what people are talking about that decoupling may or may not be happening. It’d be interesting to hear from some of our Bitcoin friends, crude oil, fairly flat. 6302 was the close Looks to open a little bit above 63 here as it opens here in an hour or so as we record this year in Sunday afternoon here on the 27th, Brent oil was up about a half a percentage point 66 96 natural gas still below $3, but was up about two tenths of a percentage $2 and 93 cents in our XOP, which is our EMP securities contract. I was up about a half a percentage point up $113 and 38 cents for that. You know, on the week though, oil as it was slightly down, mainly due to the fact that, you know, I think there is some lingering uncertainty from what’s going on with the tariffs. Again, I’ve been saying this for weeks now, the tariffs themselves aren’t necessarily impacting prices, but the uncertainty around what’s going to happen with certain economies, which may or may not drive a recession, I think is what driving these prices down. We did see OPEC plus is considering another accelerated oil output for June. I think that’s some of the big. Big, you know, big reason why, you know, it’s happening. It also, you know, maybe, you know, also again with with the the the negotiation to the end of the war between Russia and Ukraine could bring more Russian barrels back to the open market. And as we mentioned, there was that three hour meeting on Friday between Putin, Witkoff, and there’s some discussion about what might happen. Another interesting note, I saw Stu Rigg count came out on Friday. We throw this picture up here, Rigg Count. U.S. Rig counts added two rigs week over week, the second straight week of rigs adding. And I think a lot of people are wondering, well, why would you add rigs in this type of environment? Well, I think the question of what we need to be watching for is that frac count spread. The frac counts spread shows us the difference between how many wells are being drilled and how many well are being completed. And that number has grown and will grow. Because I think what people are realizing and what people realize during the last downturn is that the cheapest time you’re going to be able to put pipe in the ground is when oil prices go down because the drilling companies respond and drop their prices. Right. Now, it doesn’t mean you’re gonna frack the well, especially if it’s a shale well because your most amount of revenue is coming in the first three months. But the cheapest you’re to be to be put pipe on the ground, is actually when prices go down. And I think that’s where we’re slightly seeing Reflective in the rig count now. It’s a little bit too early relative to what happened I think we want to see you know, we probably want to another three four Movements on a week to week basis up before this trend before we can really call this trend, you know Say this is actually what’s happening But early early indications are I think people are gonna take this opportunity to drill wells. They’re gonna duck them They’re going to sit on there and wait for prices to come back up as supply as Production and supply actually falls off the market towards the end of the year They’d come in and rip a bunch of fracks. So that’s really what I think I’m seeing and what I’m hearing. You know, we saw, you know, Casey Van Hoff, president of and now new CEO of Diamondback came out two weeks ago and said that, that said, you know, putting pipe in the ground, drilling wells is the cheapest. You’re going to be able to do it now. So why stop? Maybe we won’t be fracking wells, but we might as well drill that. So I think that’s, you’re seeing the sentiment just when we thought the M and a market was dead. EQT jumps out buys private Marcellus operator, Olympus energy, a Backstone. Backed company for $1.8 billion, being able to, you know, the crazy part is to, they’re able to you know their, their stock is so valued by Blackstone that they went ahead and took 26 million shares of common stock, which was valued at about $1 3 billion and about 500 million in cash and give you guys an idea Olympus owns about 9,000, 90,000 net acres in Southwest Pennsylvania, which is right there next to EQT’s core Marcel’s portfolio. That’s about 500 million cubic feet a day. You know, they’ve got about 165 gross locations. Another 60 or that’s 165 available in the Marcellus bench. And then they have some, some deeper benches, including the Utica at about 60. So you’re looking at about 210 locations. Be interesting to actually see how many of those check out. And you know, what they claim is that at maintenance activity levels, Olympus holds about a decade of high quality Marcellis inventory and another seven years of Utica upside. You know, I’m just reading straight from here. That’s an IR guy of the week quote right there, because, you know, who knows, who knows if that’s true if Scott Sheffield sells Dex on for 58 billion then comes out as this, yeah, they’ve only got two, three years left of actual good inventory. I’m going to hold my breath on this fact that there’s 10 years of high quality Marcellus inventory running out here, you know, part of the reason I think Blackstone was interested in the stock was the fact that they also are, are partnered up with a non-operated interest. Specifically in the mountain valley pipeline, which is acquired by EQ two years ago, which they spun out and basically monetized again as, as what I’ve been saying for a while, midstream assets, you know, right before Trump got bought or won, did stream assets were on aggregate. I felt going to go down because all of a sudden with less regulation means more pipelines can get built, which now all of the sudden means the natural monopoly that had taken place because of regulation through legislation. Now all of a sudden, you can build a pipeline and you don’t have to, you don’t get a premium for just owning a pipeline that happened to have been built five years ago. So super interesting to have EQT is probably one of the better managed natural gas players. They, they, they will come and, and, I think all that stuff. And it’s, yeah, I wouldn’t want to be in the natural gas space though. They, you know, good, good. Good for them. We got a rash of earnings coming up this week, Stu. It’s going to be absolutely busy, busy, so guys. Updated we will keep you up to speed stew my favorite part of the week what should people be worried about this week [00:23:56][559.9]

Stuart Turley: [00:23:56] I don’t think anybody should be worried about anything, sit back, enjoy the show. We’ve got some great cast members running around the world right now, and I think that we’re going to see an end to the Russian war. I think you’re going see some great prosperity around the world as trade barriers are taken down. I mean, just go figure that India has a 110% tariff on US cars. Why should any Indian want to buy a US car? So I think we’re going to see an understanding. I think President Trump’s bringing to light that other countries have taken advantage of us for decades. And I think it’s going to be a right sizing that’s going to springboard the rest of the world with us. [00:24:42][45.6]

Michael Tanner: [00:24:42] Absolutely guys, so I will with that we’re gonna let you get out of here get back to work Appreciate you guys starting the week with energy news beat as always for Stuart Turley. I’m Michael Tanner. We’ll see you tomorrow folks [00:24:42][0.0][1466.4]

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