Eric Nuttall received a reply
Eventually energy stocks will diverge from the insane day-to-day WTI volatility once a floor for the oil price is found. With stocks discounting $50ishWTI and generating record FCF, does it really matter if oil bobs around the $100 mark, or even heads a bit lower short-term???
I think the market reacted by saying ''enough volatility otherwise mutual and institutional funds will not be part of it. The energy sector will need more financing to increase the boe/d.
Brokers, analysts, bank trusts, institutionals cannot constantly use undervalued financial ratios for oil stocks. Especially when most of them are cleaning their balance sheet and will be without long-term debt before end of 2023 !
So the market done a reset, to comeback with more realistic financial ratios to convince new investors to be part of the ballgame.
So which energy stocks are well position to deliver good and consistant results for a couple of years !!!???
The one with :
Growing boe/d.
keep reduce debt and working to reduce interest rate during the process.
Better margin.
Good assets.
Enough locations undrilled to replace and increase boe/d.
Enough FCF to make strategic acquisition without financing, if it's necessary.
Paid regular monthly dividend like it was before.
I have a couple of them in my portfolio !!! Do you ?
Enough playing daytrading with the WTI !!!
The energy sector is the most important in the world for the economy to function properly.
So far today from Josh Young, you see, the market now understand and accept the real value of energy stocks :
Oil down 8%, energy stocks $xop down 2.4% ( $xle down 2.2%). Noteworthy divergence. Don't hesitate to add your own comments !
Thank's and good luck all !
Oil down 8%, energy stocks $xop down 2.4% ( $xle down 2.2%). Noteworthy divergence.