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