Starting a discussion on the future of energy with WeWork may be unconventional but it’s topical as a stark contrast to our business. If they can ‘Elevate the world’s consciousness’ it’s probably safe for us to say ‘Powering the World’. But even in the age of ESG- we don’t. We are focused on the survival of our business, not fancy slogans.

But- it’s hard not to notice a $47b valuation for a company that has never made a profit and would have made it larger than EOG. No wonder that E&Ps have been trying to tell ‘a growth story’.

However, like WeWork and the IPO unicorns before it- they are the simply the result of investors chasing outsized returns. I suggest that in the age of hyper efficient markets- they  aren’t realistic expectations at scale.

According to the WSJ, pension funds and other large investors have poured $2 trillion of capital into “private” markets chasing unicorns.

WeWork might be a tipping point for growth for growth’s sake.  If Unicorn IPOs are dead- money needs to go somewhere.  And what better way to discipline management teams than to take away their free cash flow every year. 

Maybe the real unicorn is paying your shareholders for the right to use their money.  Let that elevate your consciousness.

#hottakeoftheday