No growth, other than general increase in population. Unless they found a new use for O&G the revenues are entirely dependent on the price of the commodity. Lack of any upside surprise results in a lower P\E. You just said in a previous post that they can hedge the whole strip out to $75 or better. Does an investor want them to do that if they want the upside inflation potential in the commodity? Do they want that cash flow back in dividends and repurchases or plowed back into new projects that won’t see positive returns for 5yrs? Not sure the answers but this is why O&G cos trade at those P/Es.
Obviously O & G needs some hotter looking babes to pimp it on CNBC.
I mean they can hedge, but for instance DVN was only 20% hedged in March. Though it's a fair point.
APA is around 6.5 right now with a 1% dividend. I think there's an upside still going forward.
If it does 50%, I will ship you a nice bottle of Washington Wine for all you consulting work.
$100 a share and I will ship you a case!
I retired in 2019 and with the growth in the market from 2019,
Good for you. You're losing money in the markets now and the supermarket!
You must be a lot of fun at dinner parties.
Well I was wrong. Good for the fed. Maybe they aren’t as big of pu$$ie$ as I thought
Only have a loss if sell. In big picture, he paid X and even with recent pullback he has more than X. And, perhaps some dividends or interest paid out from his holdings so that also offsets some of the pullback. The inflation is unfortunate though with some adjustments a retired investor using investments to fund retirement can pivot to avoid significant early pullbacks of investment values in the first decade of retirement. Stocks and real estate tend to rise with inflation so the real value impact is nominal. The pain is when you sell a taxable investment and the "gain" is taxed at 15% or higher yet most of the gain was due to inflation rather than real buying power increase.
