Highly Unique Research Process
High resolution commercial models for all covered companies: Our models are built using a consistent methodology, allowing to easily compare and review each model. We build each model from an area by area rig count and type curve which we trend up or down over time.
NAV models feed financial models: Many other analysts model cash flows, income statement, and balance sheet separately from their NAVs on each company. Production, CAPEX and OPEX costs from our NAV models are what feeds our financial models making each model consistent within itself.
Consistent approach: Each analyst reviews other analysts models and inputs to check for consistency between analysts.
Consistent inputs: We make sure our differentials, spacing, costs, and trends on all of the above are consistent from model to model and play to play.
Quarterly checks – estimates vs. actuals: We focus on net completions by area and re-zero our models on a quarterly basis based on what each company reports.
Consistency between energy sub-sectors
/ Service and E&P: The build-up of our quarterly models helps fuel our service assumptions of rig count. Our service assumptions of inflation inform our E&P inflation and deflation estimates.
/ E&P and Midstream: Likewise, our E&P growth assumptions inform our midstream models and our midstream valuations inform our valuations for E&Ps with midstream subsidiaries.