By Paul Sankey
Published on November 14, 2022 at 5:03 PM
In our thematic note last week “The E&P Inventory Underhang” we explored growing inventory concerns at Coterra and Pioneer after their 3Q22 earnings reports. Citing Pioneer’s well productivity deterioration, ill-defined capital allocation philosophy, and a broader question mark on the reduction of Pioneer’s future drillwell inventory, we offered Diamondback Energy (FANG) as an alternative to PXD for those investors seeking large cap E&P exposure to the Permian Basin. Here, we illustrate the underpinnings of our […]
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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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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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