#1 AssetWhat is your number 1 asset?
You! You are your number 1 asset. For one reason health, without health all the money in the world does not matter.
Second reason is a 30 year old has +- 35 years of work ahead of them. Time value and opportunity value, theoretically limitless earnings opportunity. When we take on debt we add constraints, obligations and borrow from our earnings in the future. Our earnings potential is our number one asset.
Oil and gas companies that were heavy leavered to debt have been saved by higher O&G prices in the immediate term. Many were priced at insolvency. The smart thing to do was to own these equites first, however now that we have seen the "move" in share prices many of these companies will grow slower moving forward. The biggest reason is debt constraint. Like Andy Mah at Advantage, they will focus on debt repayment. Kelt will focus on growth.
Kelt will double production in this environment quicker then most others, excellent growth potential in a positive oil and gas price environment. If commodity prices crash Kelt has no debt obligations, win, win, Cheers Matthew