We continue our series of “long takes” amidst the macro mess we are slogging through and wanted to hit upon a couple of observations coming out of a surprisingly interesting quarterly earnings season that we think are relevant as corporates and investors think through long-term implications and opportunities.
The first comes courtesy of Diamondback Energy: Is US shale oil peaking? And if it is, what does that mean for the energy macro. The second comes from NextEra Energy which made some interesting remarks about the relative economics of various generation sources juxtaposed against massive US power demand growth. The first two points then lead to the obvious question of how should companies think about business evolution, M&A and strategy during a period of uncertainty and turmoil to best position themselves for the decade ahead. For investors, who and what do you want to own?