Group 1 - The most critical asset in the energy sector is the company's contract portfolio, which serves as a barometer of financial stability rather than just the price of oil or megawatts [1] - Companies face a fundamental choice between being exposed to merchant risk with spot market prices or securing revenue certainty through fixed-price agreements, impacting their valuation significantly [2] - Understanding the contractual structures, including oil leases, midstream gas contracts, and Power Purchase Agreements (PPAs), is essential for assessing market exposure [3] Group 2 - The financial health of the hydrocarbon value chain is influenced by risk management in both upstream and midstream sectors, focusing on securing molecules and stabilizing transportation fees [4] - The financial structure of Exploration and Production (E&P) companies begins with access rights, which are crucial for determining future cash flows [5] - Analysts must calculate the true, unburdened cash flow per unit to accurately value assets, as contractual clauses define the cost and ownership structure [6] Group 3 - The Habendum Clause is vital for asset longevity, with a high percentage of Secondary Term leases indicating a secure, long-life asset base [7] - Royalty agreements dictate that mineral owners are paid first, impacting the company's cash flow per barrel based on the type of royalty [7]