The Importance of Balance Sheet Analysis in E&P

I hope you guys enjoy my podcast with Twitter's own WTI Realist. We spend nearly 90 minutes dissecting the oil bull thesis, emphasizing under-followed parts of the value chain like midstream and royalty businesses.

If you enjoyed the podcast, please follow WTI Realist on Twitter here. Also, check out his Substack here!

Here's the time-stamp:

• [0:00] Meet our guest, WTI Realist
• [7:00] The Simplicity of the Oil Industry
• [14:45] Understanding the “Full Cycle” in the Oil Industry
• [16:30] Should Exploration and Production (E&P) Companies Hedge?
• [23:00] Dividends vs Buybacks vs Paying Down Debt: Maximizing Shareholder Value
• [30:00] Importance of Reserve Life in the Oil Industry
• [34:00] WACC vs Interest Rates vs Discount Rates: Which is the Best Metric?
• [41:00] The Royalty Business (PrairieSky Royalty $TSX:PSK): Exploring the Benefits
• [49:00] How to Identify the Best E&P? The Role of Management
• [1:00:00] Spotlight on Pine Cliff (TSX:PNE)
• [1:09:00] Exploring Frontera Energy ($FEC)
• [1:16:00] Is the Oil Market Getting Boring?
• [1:23:00] More Insights from WTI Realist and Closing Questions

Finally, thanks to the following sponsors for making the podcast a reality!

Mitimco

This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns to support MIT's mission. To help the emerging manager community more broadly, they created emergingmanagers.org, a website for emerging manager stockpickers.

I highly recommend the site for those looking to start a stock-picking fund or learn about how others have done it. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers, and more!

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I spend nearly all my time reading Tegus calls on existing holdings and new ideas. And I know you will too. So if you’re interested, head on over to tegus.co/valuehive for a free trial to see for yourself.

TIKR

TIKR is THE BEST resource for all stock market data, I use TIKR daily in my process, and I know you will too. Make sure to check them out at TIKR.com/hive.