In light of all of the all media headlines and investor skittishness we thought we would let you know that we continue to be extremely comfortable with the energy investments we have made with our capital and yours.
As you know, we focus on purchasing high quality businesses at substantial discounts to their long term value. We are quite confident that the businesses that we have bought have the potential to earn substantial rates of return over the next three to five years.
Our investments in the energy sector share the following common features:
- large and diverse resource bases and in Ensign’s case high quality assets
- healthy and flexible balance sheets; we can sleep at night
- low cost operations
- sufficient cash flows to cover the majority of their funding needs at current oil prices
- the potential for growth through expanded production
- all of our energy investments are trading at substantial discounts to their intrinsic values
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