This week’s issue of Super-Spiked is in the form of a video podcast and is a follow up to last week’s “Reframing the growth versus returns trade-off debate” post (here). We provide additional perspectives on the opportunity for leading energy companies to narrow, if not close, the large valuation gap that we believe exists for companies capable of sustaining top quartile profitability. The ability to sustain profitability, somewhat paradoxically, requires risk taking via some mixture of M&A, exploration, global, new energies, or infrastructure investments. We also note that items like dividend/stock buyback policy and ESG & climate objectives are “table stakes” and not core investment drivers on their own.
