crucial fact, page-82

Goodness hasn't it been busy on the MAD forum today. The argument seems to have moved on since paprika sought to compare HZN and MAD - nice to have you follow me around HC.

To provide my answer: MADs business is essentially one of small projects that are largely self contained and should be executed in 1-2months. i.e. drill a few wells, install pump jacks, heater treaters and a few tanks enter production, then repeat again. HZN are involved in large projects which involve 1+years of capital expenditure before starting production which builds up, plateaus for a while before declining (i.e. offshore China). This can cause accounting return on capital to look low in the period where they are investing prior to receiving revenue. The lag MAD should have in such respect should be small.

If you want to discuss HZN further including the quality of the consultants who carried out the reserves assessment for them and their financier come of over to that forum.

Return on capital is not "Hocus Pocus" - all oil companies should be calculating an expected return on capital before making an investment decision. Of course that is subject to a number of key assumptions, but if it doesn't look good based on reasonable assumptions it is questionable if the company should be investing. Indeed meeting a company's return thresholds is a pre-requisite before resources can be classified as reserves (though the majority of assumptions and what those hurdles are is at the discretion of the company in the SPE rules).

I have noted the following arguments repeated ad nauseum over the last several days that have somewhat blighted the spirited debate:
1.) Broadly: ???? can't be believed because they are short and incentivised to see the price drop. The logical response to this is "???? can't be trusted because they are long and incentivised to see the price increase". This would make for a somewhat boring debate so perhaps we can cut it out?
2.) "all people short are one person using the same account.....could be countered with "all people long are one person using the same account"; thus HC is just two people furiously typing at each other while logging in and out of accounts.....I do not think this is the case nor do I post using any other accounts. If you have genuine concerns perhaps contact the moderators