Oil company executive metrics - Something to think about.For those not familiar with the structure (including financial structure) MOST look at YOY results.
So think about this...
2021 vs. 2020 (amazing results)
2021 Notes: Therefore I would NOT look for significant organic growth in 2021 (why drill when I already have great YOY top line growth??)
2022 Notes: I know already I will beat 2021 YOY for the first half which should carry me to a YOY growth 2022 v 2021. Therefore I am already setup to BEAT YOY for 2021 and 2022 if I do NOTHING!
This everyone is what management teams (the smart ones) are thinking already.
2021 and 2022 in the bag....maybe look at incremental wells in 2023....at this point think of the price of oil.....
Just my thoughts having been in those discussion...you will see some back half 2021 rig count climbs (TO MAINTAIN PRODUCTION LEVELS) but NO smart company would look for great organic growth..