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Why does FANG's valuation keep going up?
Posted: Thu Feb 16, 2017 6:56 pm
by dan_s
Read this and you will know why:
http://www.oilandgas360.com/diamondback ... owth-2017/
Upstream companies with growth like this locked in are "rare gems". Hang on to them.
Re: Why does FANG's valuation keep going up?
Posted: Fri Feb 17, 2017 10:33 am
by cviller
Dan, Do you know if GPOR still owns FANG shares? Thanks.
Re: Why does FANG's valuation keep going up?
Posted: Fri Feb 17, 2017 11:01 am
by dan_s
I believe they sold the last of their FANG stock in 2015. See Our Equity Investments section in their 10-K.
On the GPOR Income Statement there is a line item in the Other section called "Income/Loss on Equity Method Investments". In Q1 2016 they wrote off their investment in Grizzly Oil Sands, but that has huge upside if oil prices rebound a bit more. Eventually, the Canadian oil sands must be developed to meet future oil demand.