There isn’t much appetite for o/g stocks on the street right now. All the boys have been burned and some of them in a big way. You’re going to see additional M&A for a while to come. Companies are coming to have to get bigger to compete and survive. They’re also going to have to get lean in non-revenue generating positions. You can’t afford to pay 250 IT and HR people anymore. Things are changing and traditionally o/g operators are slow to change. They push their vendors for price cuts to the point of bankrupting them, and then they may look internally. That’s just beginning to happen over the last 6 months or so. Service companies have stopped slashing prices to its time for the operators to do it on the inside.
Right now wouldn’t be a bad time to get in on some larger companies that have a long track record. Just know that when/if you do you may have to play the long game to make a really good return. Holding and selling at the right time could make for a REALLY good return, though. The o/g sector isn’t going anywhere. Wind is a joke, solar takes up too much space, greenies are freaked out by nuclear, and now people are bashing coal as well. Someone has to make electricity to charge all these new battery powered cars that are rolling out.
