Steven Wood of GreenWood Investors: Long Contango Oil & Gas

Steven Wood of GreenWood Investors: Long Contango Oil & Gas
lalabell68 / Pixabay

Steven Wood of GreenWood Investors, InvestPitch presentation produced by sumzero and Institutional Investor on the long case for Contango Oil & Gas Company (NYSEMKT:MCF).

Play Quizzes 4

Also see: Mike Winston of Winston Capital Partners: Long MGM Holdings

London Value Investor Conference: Joel Greenblatt On Value Investing In 2022

The first London Value Investor Conference was held in April 2012 and it has since grown to become the largest gathering of Value Investors in Europe, bringing together some of the best investors every year. At this year’s conference, held on May 19th, Simon Brewer, the former CIO of Morgan Stanley and Senior Adviser to Read More

Contango Oil & Gas (MCF): From Runoff to Run Up

Contango Oil & Gas Company (NYSEMKT:MCF) has always been an entrepreneurial company based on two core beliefs: that the only competitve advantage in the commodity-­?based natural gas and oil business is to be among the lowest cost producers and that virtually all the exploration and production industry’s  value creation occurs through the drilling of successful exploratory wells.

The company has never confined itself to exploration in the Gulf of Mexico, yet became known for it ever since it hit  a huge natural gas field in 2007. After the regreIable death of its incredibly colorful and wise co-­?founder and  chairman earlier this year, the other  co-­?founder has  assumed the role of Chairman and acquired very attractive onshore assets where the company can repeatably drill high-­?return wells in order  to grow its per share net asset value (NAV). The company  will continue to drill high-­?impact exploration wells with a quarter to a  third of its budget, yet after the BP plc (ADR) (NYSE:BP) (LON:BP) Macondo disaster, approvals to drill prospects have been slowed down, putting legacy Contango Oil & Gas Company (NYSEMKT:MCF) in a position to watch its reservoirs deplete without many opportunities to counter  this run-­?off. Through the recently-­?completed merger, the addition of Crimson Exploration Inc. (NASDAQ:CXPO)’s Eagle Ford and  Woodbine acreage  in South and Southeast Texas will allow Contango to drill more predictable and  high-­?return wells  while it awaits approvals to drill its next eight prospects in the Gulf of Mexico.

The biggest investment disasters in the commodity space have  been companies whose management teams misunderstood how to effectively  allocate capital. With Contango Oil & Gas Company (NYSEMKT:MCF),  we have the opposite  situation: a company that has produced outsized returns  historically,and  has been an avid buyer of its  own stock over the last several years.

H/T Curry Goat

Steven Wood of GreenWood Investors: Long Contango Oil & Gas

Updated on

Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)
Previous article Nokia Corporation (ADR) (NOK) Offers Cash To Get Indian Assets Released
Next article Facebook Year In Review Lets Users Revisit 2013

No posts to display