Should I be adding to my energy positions here for the long term ? I currently own SDE, BIR, WCP, CVE, PNE, ARX, SGY, MEG, XOM, XOP from lower levels. Would like to add another 50% of my current invested capital, not sure if i should wait for a 10-20% pullback or just go all in and sit tight. Your thoughts would be greatly appreciated.
Is there anything special that brought Pine Cliff Energy to your attention? I know you mention the company being debt free, paying a monthly dividend [it looks to be about a 6% annual dividend], the low decline rate and ton of free cash flow, which is a lot to like! And,I guess a second question, what would have to change about the company for you to want to sell it? THANKS for bringing the company to my attention, which up to today I had never heard of.
The company has excellent land holdings in older fields with low decline rates and capable management. I don't think about triggers that would make me want to sell since I prefer long term holdings and will react to events when they occur rather than stew about risks that might never emerge. Typically, when I hold a company with a valuable asset base I would only sell if I saw evidence management had lost their minds, as I did with ARC Resources when I reviewed their silly "hedge" book and saw the likelihood of losses as much as $1 billion as probable.
Should I be adding to my energy positions here for the long term ? I currently own SDE, BIR, WCP, CVE, PNE, ARX, SGY, MEG, XOM, XOP from lower levels. Would like to add another 50% of my current invested capital, not sure if i should wait for a 10-20% pullback or just go all in and sit tight. Your thoughts would be greatly appreciated.
Is there anything special that brought Pine Cliff Energy to your attention? I know you mention the company being debt free, paying a monthly dividend [it looks to be about a 6% annual dividend], the low decline rate and ton of free cash flow, which is a lot to like! And,I guess a second question, what would have to change about the company for you to want to sell it? THANKS for bringing the company to my attention, which up to today I had never heard of.
The company has excellent land holdings in older fields with low decline rates and capable management. I don't think about triggers that would make me want to sell since I prefer long term holdings and will react to events when they occur rather than stew about risks that might never emerge. Typically, when I hold a company with a valuable asset base I would only sell if I saw evidence management had lost their minds, as I did with ARC Resources when I reviewed their silly "hedge" book and saw the likelihood of losses as much as $1 billion as probable.
Many Thanks!
This explanation is quite helpful to my thinking.