Today marks the last day of EnerCom's The Oil and Gas Conference® in Denver. My takeaway from the conference – cash is king.
Although price cycles are nothing new in the energy industry, no one knows the future of pricing. In light of the drastic volatility in commodity prices this year, the message from the conference seemed to be that every oil and gas company needs a buffer to deal with the increased volatility. Strong cash flow, or the availability of capital, will allow flexibility during this unpredictable time.
Speakers today referenced the current state of the oil and gas industry as being in a "transitional time" and in the process of "evolution." Nonetheless, the age-old adage remains: cash is king.
However, while the current market creates uncertainty, it also creates opportunity. The overwhelming feeling of the conference was excitement and eagerness for what opportunities may be ahead.
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