Nov 15, 2023·edited Nov 15, 2023Liked by Arjun Murti
Energy companies need build business models that are able to withstand the volatility of the commodity cycle. To regain the trust of energy sector investors, financial discipline has to become a way of life.
The managers need to think like owners. The best test is to adopt consistent annual cash distribution increases as the measure of success. The business model should have a margin of safety. Too much leverage puts the distribution at risk. Maintain a fat distribution coverage ratio so distributions can grow when business is slow. Don't pursue business-trend fads that destabilize finances.
P.S. I love what you are doing with your website and podcast. And I am a regular listener of C.O.B. Tuesday. Keep up the good work.
Nov 12, 2023·edited Nov 12, 2023Liked by Arjun Murti
John O'Keefe and Suzanne Baer (as am I) are proud of what you have accomplished (and keep accomplishing with Super-Spiked) in your career as an energy analyst and now guru! When you mention Oryx and entertainment value I sense you are channeling a memorable night out in Houston hosted and epitomized by John O'Keefe, he of the shirtless tie.
Paul, great to hear from you. I saw a previous comment but wasn't sure that was you. That was a fun night! Still remember it well. Keeping the OAPN section rated PG... :)
Energy companies need build business models that are able to withstand the volatility of the commodity cycle. To regain the trust of energy sector investors, financial discipline has to become a way of life.
The managers need to think like owners. The best test is to adopt consistent annual cash distribution increases as the measure of success. The business model should have a margin of safety. Too much leverage puts the distribution at risk. Maintain a fat distribution coverage ratio so distributions can grow when business is slow. Don't pursue business-trend fads that destabilize finances.
P.S. I love what you are doing with your website and podcast. And I am a regular listener of C.O.B. Tuesday. Keep up the good work.
100% Ed and thank you!
Excellent work as usual. Thanks!
As always, a valuable entertaining read. Thank you.
John O'Keefe and Suzanne Baer (as am I) are proud of what you have accomplished (and keep accomplishing with Super-Spiked) in your career as an energy analyst and now guru! When you mention Oryx and entertainment value I sense you are channeling a memorable night out in Houston hosted and epitomized by John O'Keefe, he of the shirtless tie.
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Paul, great to hear from you. I saw a previous comment but wasn't sure that was you. That was a fun night! Still remember it well. Keeping the OAPN section rated PG... :)
You need to copyright quadrilateral of death.
Dan Jenkins wrote a great book about Texas but called it Baja Oklahoma
That is great....going to have to use that line in a future post.
thank you Matt. Midstream is indeed an area I am spending much more time on and hope to work it into future posts.