Dan Pickering, founder and chief investment officer at Pickering Energy Partners, joined Hart Energy’s Jessica Morales by Zoom to discuss the fallout from the devastating plunge in oil prices this week and where that leaves M&A.
Pickering also shared his take on the Texas Railroad Commission’s decision to not mandate oil production cuts, for now, saying: “Maybe the Railroad Commission comes in when demand gets better and we get closer to bridging that supply/demand gap. That’s when it’s really going to matter.”
As far as what energy investing in 2020 will look like moving forward, Pickering added, “The big guys are going to survive and you really have to start picking winners and losers in the smaller cap. Being very selective is what I would call energy investing 2020-style.”
Although Pickering Energy Partners’ Dan Pickering believes the industry is in for a couple of tough years ahead, he also believes the survivors are due for a bounty: Assets will be available for prices not seen in 30 years.
Management consultant CEO Alan Carnrite was an active player in the flurry of mergers in the oil and gas industry 20 years past. He thinks the industry once again is ripe for a house cleaning.
Today’s featured Forty Under 40 honoree is Hunter Wallace, Atlas Sand’s COO who has led in the design, construction and capitalization of two frack sand plants in the Permian Basin.