To: DinoNavarre who wrote (206086 ) 11/8/2025 10:21:35 AM From: robert b furman 2 RecommendationsRecommended By
Read Replies (2) | Respond to Hi Dino,is at all-time lows vs. the price of gold. I'm nnot a commodity player at all, but I recognize commodities can get too cheap and too high - with historical flip flops more than abundant. G&R has gone on record that all of the major shale deposits have reached the 50% depletion and a rolling over of max production is already at hand. They maintain that pricing power will soon shift back to Opec + ,and their track record of price boosts is well documented. Major new oil fields will be opened, but the flow of oil is off in the future indicating a lag of new oil production out to 2027/2028. The oil surplus that EV's promised to create has never been realized. The fossil fuel demand of emerging markets has chronically been underestimated for decades - Think India and Africa. I believe buying these efficient non-operaiting oil companies is an excellent higher risk play in the energy field. Having lived in Texas since 1981 and being an owner of multiple dealerships has introduced me to some well-heeled individuals who own a lot of property for family held long term investments. Their land is often sold, but the royalties are never sold. Many states don't recognize royalties and those that do, have a wealthy class that almost never mentions their royalty holdings. These non-operated E&P have utilized some excellent accounting practices that allow oil depletion and high cash flow that gets distributed to the shareholders at a tax rate that is at a qualified dividend rate, often lower than corporate tax rates, I have a large position in XOM and CVX which I accumulated during the pandemic and will hold those shares for the very long term. Both of those stocks have a dividend yield now at XOM @ 3.62$ and CVX @4.48%. NOG is serving up a dividend yield @ 8.78% and VTS @ 10.81%. Both are recent buys and in short term status. I'm not saying to bet the farm, but their business model is a niche type and so far, has been very successful, and so far, stable GULP. It is their hedging that gives me a longer comfort zone than the current price of oil gives me. Whether it is low inventories or wars, the price of crude intermittently gives these folks the opportunity to catch a higher price than the usual daily quote for crude. It is a powerful consideration to ponder when considering a position. Yes I do get nervous around earnings website time. I hope that helps, so far, the 10% dividends have been very nice. I have a limited position in both. Full disclosure. Bob
