Have gotten less enthusiastic about REI. My biggest issue is their "smart and disciplined" approach to acquiring and exploiting their Central Basin vertical wells. These are very cheap to drill but very low in production per well. 100bpd doesn't get REI on any Permian producer radar for takeover/acquisition. That eliminates one of the best reasons to hold small producers. They are in the right Basin(Permian) but are holding lots of vertical wells that not many others are bothering with.
It's been painful to watch profitable producers not getting any market love but I got tired of waiting. I am also worried about the possibility of an oversupply of oil in 2024. OPEC has been limiting production but the world economy could hit a speedbump that will limit consumption further. Not believing that it's permanent or long lasting but could create some volatility in pricing.
I sold my REI but still holding an option that expires in 6/24.
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