We utilize our key driver framework to identify opportunities in the market where strong company level fundamentals such as Pricing Power, Capital Returns, or Market Position more than offset a horrible industry climate.  We zero in on the Natural Gas sector as deserving of a closer look.

We used the Amenity NLP Platform over the last three quarters to generate extractions regarding CapEx across the E&P sector. The results appear to show that E&P management teams and analysts are more focused on capital restraint, as both event counts and net polarity with regard to CapEx have trended positively since Q2’19. This data points to capital restraint being the first step toward investors taking a more constructive stance on the E&P sector which overall will be a wise path for the industry.