$FANG-TASTIC VOYAGE: CFO Kaes

By Paul Sankey Published on May 14, 2022 at 11:44 AM

We hosted Kaes Van’t Hof on Thursday’s Strategy Session. He is President and CFO of Diamondback Energy, a $24bn market cap/$30bn enterprise value pure play Permian US oil & gas exploration & production (E&P) company headquartered in Midland, Texas. Kaes is impressive; client feedback on his chat was strong. A young man, 36 years old, a former tennis pro out of California/USC with Dutch heritage (he and his father Robert became the first father and […]

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Coterra & US E&P: Keep Your Discipline

By Paul Sankey Published on March 30, 2022 at 7:58 AM

The attached note started as a focus on Coterra, the $22bn market cap combination of two US E&Ps, Cimarex and Cabot, one oily, the other gassy, that merged and just started trading as $CTRA in late 2021. In the note you will find the rank data: the value destruction for shareholders of the US oil exploration and production (E&P) industry in their giant shale oil science experiment 2010-2019. Line from the note: “from 2006-2019, the […]

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US E&P Q3: The Power to Set Oil Prices

By Paul Sankey Published on October 20, 2021 at 3:07 PM

Key points: Clients are focused on OPEC spare capacity and demand growth, but also, rightly, North American supply growth, which is the most price elastic component of global oil supply. Halliburton results yesterday naturally raise questions over US production growth; the company stated that it sees 20% rise next year in North American revenues, which includes “solid pricing gains”. This would imply Halliburton expects US E&P capex to be ~10% higher next year; not a […]

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