How Oil Explorers Deliver Maximum Value

An interesting post by Hal about Oil E&P companies that I thought was worth noting for future reference.

He points out that these companies “deliver most value to shareholders for the least cost at the exploration stage“, noting that after that huge amounts of CAPEX are required to deliver lesser amounts of value.

Noting that the classic E&P model involves concentrating on exploration with a bit of cashflow from from production somewhere.

“But no, selling up assets is very much what E&Ps do, and that’s generally the way that shareholders make most money”