IMHO ... we're all delusional.So here's the thing....

IMHO ... we're all delusional.

So here's the thing. Undervalued/Overvalued ... COMPARED TO WHAT???

I spends hours on this subject (not OEL) almost every day. Undervalued compared to what metric. Is that metric relevant? Is it a peer metric? Is the peer relevant. Is it an economic metric or an accounting metric (those on COE forum will know what I mean for sure).

No matter the metric ... the management discount that needs to be applied is never high enough.

Said it before and will say it again ... pick the simplest peer metric available ... say EV/boepd production for GoM producers (e.g. use Talos as proxy or use a basket of comparable stocks). Without doing the math in detail, I'd be surprised if OEL didn't screen as "undervalued" on this metric. Easy to get the TTM numbers (OEL at ~EV of $42M and TTM 3,000boepd puts it at $24,000 per flowing boepd. That is under most US E&P ... but I make no comment on suitability.

But how would you account for "mgmt risk". There's probably a damn good reason for it to be low! So IMO don't take this low multiple as a reason to invest.