Listen to this interview - May 3
Posted: Fri May 03, 2019 8:54 am
https://cdn2.hubspot.net/hubfs/4043042/ ... odcast.mp3
I urge all of you to listen carefully to the 12 minute interview with Leigh Geohring at the link above. Leigh is an expert on natural resources. He believes that the stage is set for a significant bull market for precious metals and for oil. At the very end he says that the Chevron + Oxy bidding war for Anadarko is just the beginning of a very active M&A cycle because oil company equities are super cheap.
Raymond James published details on why they think WTI will be trading over $90/bbl in less than a year. Send an email to energyprospectus@gmail.com and Sabrina will send you the RJ report.
"The past 18 months has seen one of the more curious divergences we have ever seen: natural resource public equity has seen large liquidations while natural resource private equity has seen strong inflows. While we don’t believe that there is anything fundamentally wrong with investing in natural resource assets via private investments, this divergence in asset flows has bid-up private prices by upwards of 35% compared with public valuations, according to our models.
Normally, public assets trade at a premium, due to the discount for lack of marketability applied to private equity investments. Today, this is just the opposite. Moreover, our models show that on average, public companies are drilling better wells than their private counterparts, by as much as 40% on average. We think that public market investors are simply frustrated with owning energy and natural resource assets, which has led to widespread liquidation – and created unprecedented opportunity in the asset class today."
- Goehring & Rozencwajg, Natural Resource Investor May 2, 2019
I urge all of you to listen carefully to the 12 minute interview with Leigh Geohring at the link above. Leigh is an expert on natural resources. He believes that the stage is set for a significant bull market for precious metals and for oil. At the very end he says that the Chevron + Oxy bidding war for Anadarko is just the beginning of a very active M&A cycle because oil company equities are super cheap.
Raymond James published details on why they think WTI will be trading over $90/bbl in less than a year. Send an email to energyprospectus@gmail.com and Sabrina will send you the RJ report.
"The past 18 months has seen one of the more curious divergences we have ever seen: natural resource public equity has seen large liquidations while natural resource private equity has seen strong inflows. While we don’t believe that there is anything fundamentally wrong with investing in natural resource assets via private investments, this divergence in asset flows has bid-up private prices by upwards of 35% compared with public valuations, according to our models.
Normally, public assets trade at a premium, due to the discount for lack of marketability applied to private equity investments. Today, this is just the opposite. Moreover, our models show that on average, public companies are drilling better wells than their private counterparts, by as much as 40% on average. We think that public market investors are simply frustrated with owning energy and natural resource assets, which has led to widespread liquidation – and created unprecedented opportunity in the asset class today."
- Goehring & Rozencwajg, Natural Resource Investor May 2, 2019