Hey Westslope, i just got back from a few days in Buena Vista, and Vail, Colorado. Hot tubbing in Buena Vista and art gallery touring in Vail. We saw many museum quality + million dollar paintings.
What are your investment criteria and rules for energy stocks?
My investment criteria are:
1) Self-funding the 2012 Capital Investment Program with 2011 Funds flow from operations.
2) Risked Exploration Program in 2012 - 2013 is equal to, or greater, than their Enterprise Valuation.
3) Enterprise Value is a discount to 2012 - 2P reserve NPV ~ 10%
4) Enterprise valuation is 3 - 5 times trailing cash flow, (funds flow from operations).
5) Working capital is increasing quarter to quarter.
6) No debt, or minimal debt, less than 30% of 2012 - 2P Reserve NPV
7) Production is +90% light oil production
8) Wellhead sales price is based on Brent oil pricing.
9) Country royalties are less than 20%
10) Country corporate income tax is less than 35%
11) Land portfolio with 5 year inventory of high impact exploration prospects.
12) Diversified and or moderate country risk.
13) Operations in high growth countries such as Colombia with 2012 GDP growth of +5% and Thailand with 2012 GDP growth of +6%.
14) Invest in countires where I would travel on holiday.
15) No investment oil operations in countries with high geo-political risk: Venezuela, Ecuador, Argentina, Nigeria, Congo, Kenya, Somalia, Kenya. |
