Dear fellow investors,

Love is in the air, everywhere I look around

Love is in the air, every sight and every sound

And I don't know if I'm being foolish

Don't know if I'm being wise

But it's something that I must believe in

And it's there when I look in your eyes

Chairman and largest shareholder, Harold Hamm, is trying to own our shares of Continental Resources (CLR US) at a price of $70. We’ve seen it trade above there in the open market in the last month. How strange? Warren Buffett is bidding on a regular basis to buy shares of Occidental Petroleum (OXY) from other existing shareholders. The stock isn’t sprinting higher on this news. How strange? These are historically control investors who don’t mind playing for keeps.

Public markets need to recognize that, “Love is in the air, everywhere I look around.” People in the oil and gas business are petrified of the environment that we are in because they had to live through the miserable 2010s and stared into the abyss of negative oil prices in the spring of 2020. This has caused the industry to look at mid-cycle pricing of $50-$70 per barrel in making their capital allocations and forecasts. We don’t agree with this, “And I don't know if I'm being foolish.” These companies are cheap and exploding with cash. No new supply is in sight. We see $85 per share, “And it's there when I look in your eyes!”

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