[video] Dicker: Storms Hurt Permian Producers
NEW YORK (TheStreet) -- I was talking to Jim Cramer today about the latest winter storm to ravage the production of oil in the Permian basin of West Texas. Because of this storm, both Pioneer Natural Resources
Stocks such as Pioneer and Cimarex have been some of the most impressive stories in the energy space in 2013, as production in the Permian has exploded and oil prices have remained high.
But in the last two weeks, these stocks have lost some steam. Not only had their price appreciation gone parabolic too fast and needed a moderating moment, but comments from outgoing EOG Resources
Pioneer has dropped from a high price of over $227 a share to now trade at $178 and Cimarex has traded down from $110 to under $95. Adding the reduced production guidance from these Permian plays should add to the selling pressure over the next few weeks.
I've strongly recommended the oil shale producers at times in 2013. In fact, Cimarex was one of my best trades of the year. I want very much to be engaged and invested in these companies as I believe that the domestic oil shale story will be very strong again in 2014 as it was in 2013.
I just want to be in these stocks at the right time and not when they are facing both real and perceived trading headwinds. I think that's what's happening now and we need to wait for a better moment to buy these stocks again.
I talk more with Jim in the video above.
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.