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 been in a bear market for the last 6 years. What gives?

Are we off the record? Good. I don’t want anyone to hear me say this. WHAT ARE YOU STILL DOING HERE?

1. You understand that debt is something that HAS to be paid back, right?
2. You know that inventory is finite?
3. We haven’t really completed any wells for 2 months. That means, at the very least, cash flow is down 15%.
4. And this is the most important point…95% of us were overvalued at $55 and $2.57 flat. Not sure if you’ve looked but for oil at least, the futures never get even close! So if you run out PDP, net debt, G&A and interest and assume oil stays $40 for 2 years… I’m just saying… how do YOU expect to get paid?

Does oil and gas go away? Absolutely not. But can we outlast the G&A, interest, decline and debt burden before our shares are 0?

…

#hottakeoftheday