Whoa. It’s ugly out there and I’m confused. Investors rightly said to E&P companies “cut capital. Increase dividends. Buy back stock. Don’t do dumb M&A”…. And for the most part, companies have complied.

Then why are energy stocks down 25%?!? Oh. Hold on. I know this one… my LPs still don’t like the energy space. Somehow fake meat and cab companies get all the love.

Here’s a new thought: Buy back as much stock as possible. Merge. Cut rigs and completion crews. Hide out for the rest of 2019 and go back to business as usual in 2020. Can stocks perform worse while getting capital structures in even better shape? No. They can’t.

The best cure for low prices is low prices and rig count is about to get CRUSHED.