4
Current Climate
•O & G investments have generated negative returns
and destroyed capital
•Industry consolidations and liquidations will continue
to result in divestitures
•Larger independents finding it difficult to economically
drill for reserves – looking for
acquisitions
•Limited (non-existent) public market
•Private capital is selectively available
•Cost of capital is increasing
•Financial discipline is being forced on the sector
•Investors want earnings and liquidity – not just growth!