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Stansberry Investor Hour

These Energy Stocks Are Still Cheap... Not for Long

·46 min·4 clips
Tobias Carlisle reveals why Devon Energy and EOG Resources are still cheap energy stocks nobody is talking about.
The episode begins with Dan Ferris introducing the topic of energy stocks and guest Tobias Carlisle. Carlisle explains his energy investment thesis, noting that oil prices below $60 caused supply destruction and set the stage for geopolitical catalysts like the Iran conflict. He highlights specific companies, including Devon Energy and EOG Resources, praising their capital discipline and potential in higher oil price environments. The discussion covers other energy names like Apache and California Resources Corp., as well as infrastructure plays such as CF Industries and Southern Copper. Carlisle delves into his investment funds, DEEP and ZIG, which focus on small/micro-cap and mid/large-cap value stocks, respectively. He contrasts these with the momentum-driven MAG 7 stocks, arguing for a shift towards value investing. The conversation touches on housing-related stocks like LPX and MLI, noting their current undervaluation due to market freezes. Carlisle explains his deep value philosophy, emphasizing mean reversion and the acquirer's multiple as key tools. He recounts historical market cycles, such as the dot-com boom and 1960s electronics craze, to illustrate narrative-driven excesses. The episode concludes with Carlisle's final takeaway on mean reversion, using oil equities as an example of buying at trough multiples for future gains.

As heard by us

Tobias Carlisle makes a supply-led value case for DVN, EOG Resources, and other commodity-oriented companies.

Energy scarcity drives Tobias Carlisle's case. With West Texas Intermediate below $60, he says new drilling had dried up, investment had stalled, oil companies were struggling to make money, and sector multiples had collapsed.

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Why you'd press play

You'll hear why commodity investing may hinge more on scarce supply than on today's energy headlines.

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