RE:RE:Div increase every Quarter for many names for many yearsI've been investing in this space since 1993. I have never seen the conditions we have now at any point in time.
The run in the early 2000's was based on price, and the stocks lagged the oil price, but generally kept reasonable 4 - 6 x FFO the whole time.
Growth was still rewarded, and debt levels below 2 x FFO were considered no cause for alarm. Dividends were for Bank shareholders, it was drill baby drill, at least until the Income Trust model trend caught fire, and was shut down a few years later.
The rebound after the 2009 crash to 2014 was similar. By now the former Income Trusts were borrowing to increase production, and paying out > 100+ of FFO ---Crescent Point was among the worst for that (and most loved by analysts for its dividend, which would never end)
I've never seen cash flow go to debt reduction, dividends and sharebuybacks like I've seen in this cycle.
I've never seen stocks trading on as low of P/FFO, or P/E. I've never seen management teams talk about "Free Cash Flow" and what they will do with it.
To see companies talking about Free cash flow that is greater than their Enterprise Value over the next four years, while keeping production flat....nope, there has NEVER been as good of a time to be a long term investor in energy as today.
Not suprizing, when Politics and Green Energy Fantasy distort the market, and turn EV car companies with no sales into companies with market caps > Ford and GM....Energy companies will be trading absurdly cheap.