RE:RE:Industry Comparison Actually FFO matters very much in high leverage situations. The bigger the FFO the faster the debt becomes irrelevant. I would suggest that at $65 oil, debt doesn't matter at all. At some point when prices are good enough you want leverage. When your IRR on wells is 150% and your paying 8%, leverage is the way to go.
mover the last 2 years high debt brought share prices to their knees. The companies who were hurt the worst should rise the most in a high price environment which is exactly what we are seeing. It will be even more the case when market are convinced higher prices are here for the long run.