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Company Research

E&P ranking model appears to be working

Energy

Churchill Research

Mike Churchill only developed this model in early Jan but is pleased with the results so far. The E&Ps that scored better than average back in Jan have performed 11 points better than those rated below average (+28% vs. +17%) over the last 12 weeks. Interestingly, all the stocks with a 40%+ gain were in the better-than-average group (Riley, Vaalco, Valeura, SM Energy and Ring Energy). During this process, Mike also noted that certain meta-themes became apparent including how Permian plays seem to really generate wealth (they don’t just recycle capital endlessly without benefitting investors) and Canadian domestic E&Ps often have a problem with creating wealth over time.

Edition: 183

- 05 April, 2024