Join me as I talk with David Forsberg, Managing Partner with Ascent Energy Ventures in a wide ranging discussion about oil and gas technology companies and the digitization of the oilfield, the investment thesis and how it’s changed since 2015, valuations and valuation methodology as driven by data, analytics and a sprinkling of hope (hope is not a plan). #hottakeoftheday podcast Episode 53, w/David Forsberg, Ascent Energy Ventures https://youtu.be/BA1z-2q_4yQ   Audio Podcast   David Forsberg bio David Forsberg, CFA- Managing Partner Ascent Energy Ventures David founded Ascent Energy...

Dear Creditors, Please sir, may I have another? And might I mention how becoming you look in that shirt? These are just a few of the phrases uttered at meetings with debt holders over the past few months. As the industry grapples with the triple whammy of demand destruction, not meeting debt requirements and prices that don’t justify capital expenditures, it is in the hands of the creditors that the industry can (and will be) reshaped. The reason we haven’t seen a...

Dear Equity Investors, Are you still here? Wow. I know, it doesn’t seem fair, right? Amazon trades at a FORWARD P/E of 126. WeWork literally has the worst business model in history, tried to convince us it was a SAAS business (space as a service... I promise... we are a tech company) and even they could raise money. And we produce the most essential product to power the economy of the world (remember when the economy mattered?) and yet, we have...

Dear Service Companies, Big Operator XYZ here. Remember when we sent you that letter in April that said we needed you to work with us to make our capital investments economic and we needed you to be great partners. We need you to be great partners, again. You see, our wells don’t make money full cycle below $50/bbl and when you add $3/bbl of G&A, $3/bbl of interest and $3/bbl of advisory fees... well, I’m sure you see the problem. We are...

Dear Operators, I know you are opening your financial app and seeing that oil is $41/bbl and feeling giddy and I agree, that’s wonderful (although the nat gas players aren’t loving the implications). Can we take a moment to reflect? As we sit, there is roughly 15 mmbbl/d of oil NOT producing from Russia, Saudi, Kuwait, Iraq.  Your primary concern was, and is, the balance sheet.  That’s why 2019 was called “a crisis of balance sheets” before we went all 2020. So....

This week on the #htotdpodcast, we sit down with Rob Turnham, President of Goodrich Petroleum, to discuss what it’s like to be a public oil and gas company, the challenges, and the opportunities.  Having gone public in 1995 and with management owning 56% of the float, Goodrich Petroleum is an interesting case study.  Having Eagleford assets, Haynesville and Tuscaloosa Marine Shale (TMS), they have seen every part of the commodity cycle and cycle of basins and plays over 25...

WTI front month pricing is back above $40!!  The break is over! The last time we were here... the world looked very different.  700+ rigs were running.  300+ frac spreads were cracking rock.  Companies had come through Q4 earnings talking about growth. But on March 9th, the world looks a lot different. What is “price”, anyway?  Price encourages behavior.  A $2000 handbag says “exclusivity”. 3 pairs of panties for $10 says “great deal, I need more masks”. $40 oil says the...

The inflation in university and college tuition in the last 20 years has substantially outpaced inflation.  Coupled with flat wages, and now, a coming recession/depression - parents are asking themselves “is a college education a good investment for the future?” I am joined by Bob Ault - an oil and gas industry professional but with a PhD in higher education administration. We talk about inflation, what schools can do differently and what’s next for colleges.   Episode 51 - Education with Bob...

As we face the biggest crisis our nation has ever faced, events and media coverage are more polarizing than ever, which is deeply regrettable. It turns out, in my not so humble opinion, what we need as a society isn’t problem spotting (be it cultural, policy, or E&P balance sheets) but problem solving, collaboration and rebuilding.  We will get there, but much work must be done. When I started the #hottakeoftheday in November 2018, I never would have imagined what...

In “the new normal”, we need to take a hard look at our priorities as a country.  More than anything, it seems obvious our population is calling for systemic change.  For starters - let’s reimagine education. Education is the most important building block of society, preparing children for careers, but more importantly, life. After the last 3 months at home, with the varied quality of K-12 education and college curriculum delivery, are you happy with the state of education?  Of...