O&G (E&P) Equity Research Interview

overpaid_overworkedOne thing that I ding people for is if they don't understand why (for junior and mid sized E&Ps) we care about cash flow and don't care about earnings.

Also, I like questions such as "what's your target for WTI and Brent for 2013/2014, why?

For giggles, sometimes I ask stuff like, "take PRE-N, it has assets in X, Y and Z, how would you start to value it?).

What kind of things are you investing in?

And the one that can make your interview, have a good recommendation for a buy. To reiterate what a good answer would sound like, 3-5 well organized points, (not a laundry list) which make this company not only worth buying, but more worth buying than another company. Re: POE-T: Well funded with reduced downside risk in that it has $1.70/share in cash and cash equivalents, and so trading at ~2x to cash, massive upside with three million acres of exploration land in Indonesia and multi tcf prospects. Given the size of the company, a single discovery of that magnitude could quaduple the value of the stock.

what positions were you interviewing people for?

overpaid_overworkedOne thing that I ding people for is if they don't understand why (for junior and mid sized E&Ps) we care about cash flow and don't care about earnings.

Also, I like questions such as "what's your target for WTI and Brent for 2013/2014, why?

For giggles, sometimes I ask stuff like, "take PRE-N, it has assets in X, Y and Z, how would you start to value it?).

What kind of things are you investing in?

And the one that can make your interview, have a good recommendation for a buy. To reiterate what a good answer would sound like, 3-5 well organized points, (not a laundry list) which make this company not only worth buying, but more worth buying than another company. Re: POE-T: Well funded with reduced downside risk in that it has $1.70/share in cash and cash equivalents, and so trading at ~2x to cash, massive upside with three million acres of exploration land in Indonesia and multi tcf prospects. Given the size of the company, a single discovery of that magnitude could quaduple the value of the stock.

oh and what are your thoughts on pitching a MLP?

overpaid_overworkedInterviewed ER Assocs I'm not adverse to pitching anything, in fact, you're probably better off pitching somthing slightly different than mainstream. With mainstream you need to do the same thing better than everyone else, with different, you're already identified as not the same, creative picks are neccessary. Rather than a single company, I enjoy pitching a strategy, something topical, re: pair trades or similar.

How much in terms of valuation / accounting should i expect?