Sunday, June 24, 2018

Fox News commentator apologizes for racist remark

Fox News is distancing itself from a racist remark made by one of its paid commentators on Sunday.

The commentator, David Bossie, was arguing on "Fox & Friends" with Democratic strategist Joel Payne, who is black. He told Payne, "you're out of your cotton-picking mind."

Payne was stunned by the remark. He told Bossie he had "some relatives who picked cotton, and I'm not going to sit back and let you attack me on TV like that."

Bossie, a veteran conservative activist, was a deputy campaign manager on the Trump campaign. He also served as a deputy director of Trump's transition team. He joined Fox News in February 2017.

Fox declined to comment on whether Bossie would be suspended in the wake of the on-air controversy.

But in a statement, a Fox News spokesperson said "David Bossie's comments today were deeply offensive and wholly inappropriate. His remarks do not reflect the sentiments of Fox News and we do not in any way condone them."

Payne, appearing on MSNBC later in the day, said he had a "terse" exchange with Bossie immediately after the Fox News panel. He expressed "some regret," Payne said.

Four and a half hours after the TV segment, Bossie tweeted an apology.

"During a heated segment on 'Fox & Friends' today, I should have chosen my words more carefully and never used the offensive phrase that I did," he wrote. "I apologize to Joel Payne, Fox News and its viewers."

Payne said during his MSNBC interview that he accepted the apology in Bossie's tweet, but said his comments have prompted "frustration" among minorities.

"My namesake is my great-grandfather, who was a sharecropper," he said. "I took that very personally."

"Our family and people like us have worked very hard to come up over the years. And so, to have someone kind of reduce our experience and try to make light of that experience �� which I imagine Mr. Bossie was doing �� that was offensive and that was unacceptable to me," Payne said.

The banner on screen during the Fox News segment said "PUNDITS CALL TRUMP SUPPORTERS RACIST, NAZIS." The segment was supposed to be all about heated rhetoric.

After the "cotton picking" comment, Bossie again said to Payne, "You're out of your mind."

"Let's end it on a civil note," host Ed Henry said.

He moved on, but came back after a break to "address what just happened."

"I want to make clear Fox News and this show, myself, we don't agree with that particular phrase," Henry said. "It was obviously offensive, and these debates get fiery. That's unfortunate."

Saturday, June 9, 2018

A Pair Trade In E&P: Bernstein Upgrades ConocoPhillips, Downgrades Concho

The Permian basin space is becoming overcrowded, resulting in a situation where survival and growth are increasingly difficult, according to Bernstein. 

The Permian basin is a large oil-producing basin situated in the western part of Texas and the southeastern part of New Mexico, and comprises of several component basins, including the Midland and Delaware basins. 

Given the evolving scenario, Bernstein identified a pair trade in the North American oil and gas exploration sector. 

The Analyst

Analyst Bob Brackett upgraded shares of ConocoPhillips (NYSE: COP) from Market Perform to Outperform with a $82 price target.

The analyst downgraded shares of Concho Resources Inc (NYSE: CXO) from Outperform to Market Perform and lowered the price target from $180 to $130.

ConocoPhillips: FCF Growth, Low Permian Exposure Turn Bernstein Bullish

ConocoPhillips' global portfolio and Brent pricing will insulate it from congestion that's impacting other E&Ps, with its scope of operations acting as a natural hedge, Brackett said in a Friday note.

The company has a low exposure to the Permian, with the basin accounting for only 4-5 percent of its overall production, the analyst said. 

Better free cash flow yield relative it to E&P peers and capital discipline that helps to maintain production cost at $40/barrel are major positives, Brackett said. 

Higher prices lead to better growth, which could push ConocoPhillips' market capitalization higher, according to Bernstein.

Related Link: Energy Sector Earns An Upgrade

26% Below Consensus On Concho

Concho is exposed by roughly 15 percent on flows in 2018, with over 50 percent exposure on price, Brackett said.

Despite a forward curve showing the basis peaking in late 2018, the situation is likely to persist for the next four to six quarters, the analyst said. 

Brackett sees the RSP Permian Inc (NYSE: RSPP) deal as a a good strategic move that benefits the companies long-term. 

"We think, on average, investors will wait and see on CXO (especially 2Q earnings results) and as such we think investors can find a better entry point into a strong equity story." 

Bernstein is 26 percent below Street estimates on 2019 cash flow per share. 

The Price Action

ConocoPhillips shares were down 0.19 percent at the time of publication Friday afternoon, while Concho Resources was down 2 percent at $127.71. 

Related Link:

Jim Cramer Gives His Opinion On ConocoPhillips, Texas Instruments And More

Photo by Zorin09/Wikimedia. 

Latest Ratings for COP DateFirmActionFromTo
Jun 2018MizuhoInitiates Coverage OnNeutral
Jun 2018BernsteinUpgradesMarket PerformOutperform
Apr 2018BarclaysMaintainsOverweightOverweight

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