Production of components faces severe competition from Chinese or Asian companies. I would not go for that. Focus should be on utility scale PV energy production, those will rock, I guess

---

That’s a good point. You forgot the new roadster….. I’m still waiting on my Tesla truck (placed a deposit on) which is now never coming to the uk. Oh and the Tesla PV tiles I was going to put on my house build 7 years ago! 😂

---

*moving this from the other VTLE thread* This is the best value E&P on the market. Its closest comp is Permian Resources (both MidCap, oily, pure play Permian operators), which trades at 4.0x LQA EBITDAX and 3.7x 2025E EBITDAX. VTLE trades at 2.3x LQA and 2.1x 2025E. Smaller operators or standalone assets will trade north of 3x NTM in the Permian if they’re oil-weighted and have any development inventory. On the asset value point, the numbers you’re pointing to (YE PV10) are based on SEC pricing assumption requirements, which are a bit aggressive because they’re backward looking and WTI has traded off; however: • ⁠I) in their Q1 investor presentation, they show asset value at different price assumptions. At $70 WTI (roughly where we are today), PV-10 is $3.99bn. If they traded up to asset value, enterprise value would increase 47% and equity value would increase 130% because of how leveraged it is. • ⁠II) These are YE 2023 figures (they only have to issue a reserve report once per year). So, they don’t take into account any of the capex investments they’ve made this year ($430M through Q-2) or any of the newly delineated acreage that has stemmed from that capex. This stock was depressed previously because Riverstone was planning to exit and the market knew that. What’s driven this latest sell off isn’t clear to me. My guess is the market is averse to the debt levels (particularly pro forma for the Point Energy acquisition) and the absence of a shareholder return program. However, from an asset valuation standpoint, which is how smaller operators like this should trade because they’re all potential targets, that shouldn’t be relevant. Permian Resources or Apache or Diamondback or whoever would buy this based on EBITDAX and asset value and it would be massively accretive to them on both of those metrics. So it feels like a real dislocation in the market, maybe driven by a bunch of hedge funds shorting it on the technicals stemming from Riverstone punching out.

---