Author: Sean Willess

Oil Rebounds After Worst Day Since First Gulf War (CNBC)

Brian Sullivan highlights Dan Pickering’s commentary around the importance of the Value Over Volume approach on CNBC’s Squawk Box morning of March 10, 2020. Read More

Oil Tumbles As Price War Erupts (Bloomberg)

Dan Pickering joins Vonnie Quinn on Bloomberg on March 9, 2020 to share how critical it is that the US energy market embrace a Value Over Volume approach following the failed OPEC-Russia deal and sudden drop in oil prices.

There is No Place to Hide in Energy (Dallas Business Journal)

The energy industry is experiencing unprecedented volatility today, as oil prices had the largest single-day drop since the U.S. invaded Iraq in 1991 and company stock prices plunged, despite a 15-minute trading halt. Blame coronavirus fears that are dampening demand and Russia refusing to cut production along with OPEC to help prop up oil prices,…
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Shale Drillers Are Staring Down Barrel at Worst Oil Bust Yet (Bloomberg)

America’s shale drillers have never faced an oil bust quite like this.The split between Russia and its one-time OPEC allies last week has ignited an all-out price war. […] Read More

Oil Price Crash Triggers Decisions To Slow Drilling (Journal of Petroleum Technology)

An influential investor said the oil crash in progress is not as bad as it was in 2014 for investor-owned oil companies. It is worse.That judgement was offered by Dan Pickering, founder of Pickering Energy Partners, who pointed out that this time, cash-strapped producers do not have a financial safety net. […] Read More

Bloodbath For America’s Oil Frackers As Saudis Declare Price War On Russia (Forbes)

In a day of historic economic carnage, oil prices have collapsed 30% to less than $30 per barrel, after Saudi Arabia pledged to flood the oil market in a battle for market share with Russia. […] Read More

Shale Gas Inventory: Problem or Opportunity? – Why Investors Are Wrong About Long-Term Natural Gas Fundamentals

“Natural gas and renewables represent the long-term future of the energy business. While coal and oil demand will not be eliminated anytime soon, they will continue to lose share over time. This transition will meaningfully reduce CO2 emissions and improve air quality, particularly in emerging market economies. Unlike shale oil, which is higher-cost globally and…
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Houston, We Have a Problem – Free Cash Flow, Net Asset Values and the Agency Question

“Recent carnage in public E&P land is accelerating debates around the sustainability of current business models as well as the methodologies used to value those businesses. While the industry has walked back from the capital outspend ledge, at least for the moment, we still see analyst reports highlighting EBITDA multiples and forward multiple compression. Acreage…
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The Shale 2.0 Press Release

“Dear Public E&P Companies, If you haven’t noticed yet, the public equity markets are broken. The price discovery mechanism is not functioning properly due in large part to the growing influence of quantitative and passive strategies, which now represent as much as 85% of daily trading volume in many securities. As a result, many publicly-traded…
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Shale 2.0 – Revisited a Year Later

“Just one year ago, we wrote about the need for E&P management teams and boards to become more returns-focused. Indeed, since the start of the shale revolution, the industry has spent too much capital on projects that have generated unacceptable returns. Making matters worse, a significant portion of that capital was financed with debt. In…
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