RE:Stick with producersWhat seems to have happened here is that ESN increased in price with improving oil and gas prices, and the rest of the sector, while the underlying business actually didn't get any better. As mentioned before, EV isn't as low as they say because they count as a current asset inventory at $31.111 million. That's NOT a cash equivalent, so it should be in long-term assets when working with the valuation.
On the other hand, it probably would cost more than $31.111 million to replace that inventory in this current inflationary environment.