I would enter with a small position now because if things turn around — clear oil/gas price growth, stable production, good workovers — there could be big returns.
But I would be prepared for volatility, and I would watch a few critical signals:
1. Average realized oil/gas prices — if they fall, it could get tough.
2. Changes in decommissioning obligations / regulatory requirements.
3. Success of workovers and small operations that can improve production without large capital investments.
4. Capital expenditures — are they sustainable and can maintenance / operations costs be controlled.
If I find one, I would look to enter on dips or corrections because the valuation is quite low right now, which is a plus, but the entry price should be reasonable relative to the risks.
But I would be prepared for volatility, and I would watch a few critical signals:
1. Average realized oil/gas prices — if they fall, it could get tough.
2. Changes in decommissioning obligations / regulatory requirements.
3. Success of workovers and small operations that can improve production without large capital investments.
4. Capital expenditures — are they sustainable and can maintenance / operations costs be controlled.
If I find one, I would look to enter on dips or corrections because the valuation is quite low right now, which is a plus, but the entry price should be reasonable relative to the risks.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.