3rd quarter results will be ugly for a lot of upstream companies, including our Sweet 16 and other portfolio companies.
Ignore earnings per share because GAAP / SEC accounting rules distort what is actually going on during periods of rapidly moving commodity prices. Ignore impairment charges (the companies still own the properties and the oil & gas is still in the ground) and those very confusing mark-to-market adjustments on hedges. The E&P companies that have a lot of oil hedged will report big non-cash gains on their hedges ("derivatives").
Focus on:
> Production growth and guidance for future periods
> Cash flow from operations
> Balance Sheet / Liquidity
> How well they are doing getting drilling & completion costs down.
> How well they are reducing lease operating expenses and cash G&A
Strong cash flows and access to capital is what gets them through the commodity price cycles.