By Paul Sankey
Published on February 13, 2024 at 8:47 AM
At 6x pro forma EBITDA, FANG should be worth $180-190/share considering $11-12B EBITDA, less purchase-price adjusted net debt and midstream subsidiary Venom (VNOM) non-controlling interest. From there, it is a gravitational pull to $200. Everyone loves round numbers. Like 5,500 on the S&P500. Or Nvidia $1,000. But for oils, we have to rely on fundamental cashflow-based valuation. Source: Company reports, Sankey Research ~ Today’s WSJ feature on Autrey Stephens, the owner of Endeavor Energy, confirms …
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By Paul Sankey
Published on February 10, 2024 at 11:23 AM
Never Let a Good Crisis Go To Waste There was a groan went up at Sankey Research at this week’s Reuters report that Devon was in talks to acquire Enerplus Corp (ERF). Why? The news broke as we were completing this note, which argues exactly the OPPOSITE strategy for Devon, than buying a company in the Bakken. We think they should SELLL the Bakken. And more besides, and we outline that herein. We agree DVN …
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By Paul Sankey
Published on February 1, 2024 at 9:23 AM
Happy Hour today with Frank Kelly, of Fulcrum Macro, our favourite Washington DC/global geopolitics expert. Register here: https://analysthub.zoom.us/j/84966171042?pwd=M1RwalJ3ZFdoQnpNZHBkbGxETkNJZz09 Frank began his career as a writer for President Ronald Reagan and went on to serve in the White House Office. He served as a writer for President George H.W. Bush and then at the Justice Department, focusing on national security and international issues. From there, Frank went to the US Securities and Exchange Commission, as Senior …
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