I don’t know if you’ve landed at DIA recently, but when you do and just want to get where you are going, an Uber can take upwards of 20 minutes just to arrive.  So last night, after a long travel day- I went to the cab line to expedite the process. 45 minutes later my usual $41 Uber was replaced with a $77 cab.  Not surprisingly, like most things, the event reminded me of oil and gas.  

Hope and dreams and growth are great but when a business actually needs to make its owners (shareholders) money, you have to wonder- what are the TRUE economics of Uber providing car service?  Related, what are the true economics of drilling oil and gas wells in the US?

When growth is gone, there is no where to hide but transparency.  I argue – that’s where we are.  

If you are a company with a bad balance sheet and needs a dramatic rework, stop saying “We will pick up in 2020.”  You won’t.

If you are drilling wells too tight and don’t have the inventory or economics- stop hoping price will save you and make the hard decisions to restructure your debt.

If I’ve learned anything from the hottake- it’s people might not like the message, but calling it like it is is a respectable alternative.

I’m hoping 2020 sees more of that.

#hottakeoftheday