RE:Now here is some reality for some who don't seem to know Leading up to the WHO declaration of a global pandemic in March 2020, OPEC was in the midst of a price war which lowered NG and Oil prices for months prior to the pandemic.
After the WHO declaration, prices and valuations tanked sector wide. In fact, many sectors were hit hard. The TSX halted trading a number of times over the course of a few days. It was, for the most part, mass panic as people were flocking to gold/cash.
Many oil and gas companies were mired in debt, and many took on significant impairments leading to even lower valuations during the course of the year. Bankruptcies were a distinct possibility.
It was a virtually unprecedented, once in a generation confluence of events. You could get a piece of a multi-million/billion dollar company for pennies on the dollar.
I remember watching the markets intently for a few days - waiting to see what news was being shared and just how shares were being traded. I wanted in so badly and NG checked all the boxes. Anyone who had the presence of mind to invest at that time is more than likely sitting on gains of over 1,000% easy - even with the decline in energy prices over the past year.
Tie that in with the fact that even as prices started to recover (as most energy firms cut CAPEX to the bone) and throw in Russia's invasion of Ukraine and the shut down of Nord Stream, and you've got a recipe for a HUGE increase in global Oil and NG prices leading to banner years for most producers in 2022. You'd trip over yourself trying to find a company that didn't have a record breaking fiscal year.
So valuations went from extremely undervalued to somewhat overvalued in the span of a few years. It's a shame that the winter weather hasn't been cooperative these past two years as that was a significant concern for Europe which was rationing gas supplies in 2021.
I still think energy firms are undervalued when you take a look at their fundamentals, but I highly doubt you'll ever see those extremely low valuations from just a few years ago. It would take another series of unprecented events to cause the market to react in that way again.