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Shubham Garg: Small-Cap E&Ps & Launching White Tundra Petroleum

Value Hive Podcast

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How to Choose a Low Decline Oil Company

If you're looking for a company that's relatively just flat, flatish production and they have the inventory depth. Any growth company that's got a hard decline rate than 15% is just not going to be able to get outside of its own churn in a low enough oil price environment. And then any company that's trying to stay flat and doesn't have inventory, I think you want to be looking at very, very low decline rates like sub 10%. Otherwise those are the exact companies that are going to be buying at four, six, eight times cash flow as the cycle continues or should be buying right now.

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