Jon, thanks for the writeup. It makes a lot of sense. My question is how you see the prices of the companies you suggest for investing relative to current and "expected" oil prices going forward (based on the futures strip). If they are cheap to market implied prices then investing in the stocks of those companies makes sense. However, if the companies look expensive then I would be better off taking a position directly in the oil market. How do you see things?
How does this account for the ever decreasing marginal cost of production?
Jon, thanks for the writeup. It makes a lot of sense. My question is how you see the prices of the companies you suggest for investing relative to current and "expected" oil prices going forward (based on the futures strip). If they are cheap to market implied prices then investing in the stocks of those companies makes sense. However, if the companies look expensive then I would be better off taking a position directly in the oil market. How do you see things?
Hi David,
That's a great question. We are in the process of updating our E&P valuation sheet and will post some of the findings in a public article later.
Thank you.