Well said @peto2810 and great post! Agreed, when a potential...

Well said @peto2810 and great post!

Agreed, when a potential buyer is valuing an E&P company, they would certainly look at average O&G prices over the past 3-5 years to determine the value rather than the spot price on the day - similar to valuing a company via times revenue method (granted BRK's model and value is not based on revenue but you get the gist)

This is the main reason why BRK vs a traditional producer doesn't experience the same fluctuations in SP as a producer's impact is direct ie: an increase in O&G prices translates immediately to an increase in revenue for the month/year etc whereas BRK's value on their current reserves would be an average across the past 3-5 or based on sentiment looking forward based on other factors.

That being said, we're also not anywhere near as exposed as a producer which is the beauty of the model and why we're all here... Well those of us who understand the model anyways...

Have read quite a few articles stating the energy sector is looking quite bullish heading into next year mainly due poor performance in the sector across the board in 2019 (huge amount of major's SP's are down due to current O&G prices / sentiment / oversold / now undervalued) - they'll be clawing their way back to semi-fair value in 2020 as should BRK.

Waiting patiently for the next move...