Insiders still discovering the upside: management reports the opportunity keeps revealing itself bigger in live operatio
The model's full reasoning — Q1 2024 call → NOWe need to determine if management conveys that it is still discovering new upside inside the business that is already working, with both halves: fresh discoveries from live operation, and management responding with real attention/resources. Let's scan the transcript for such language. Key points: Brady Murphy discusses strategic initiatives: energy storage, desalination, bromine, lithium. He mentions "we remain in close contact with Eos... fully expect Eos to be up and running... which is expected to result material sales of electrolyte from TETRA." That's forward-looking, not a discovery from recent operation. Desalination: "In the coming weeks, we're hopeful to have our first commercial desalination for beneficial reuse contract in place... This is planned to be a 24,000 barrel a day South Texas facility. We're also in discussions for a one-year commercial pilot project in the New Mexico area... We're in the process of tying the legal terms and conditions together for these two projects, which has delayed our first project slightly but we're optimistic to close on both of these opportunities in the near-term." This is about contracts not yet signed, not discoveries from live operation. Bromine: "By the end of June, we hope to publish our Arkansas Bromine Definitive Feasibility Report... we expect the bromine economics to reflect material improvement from what we previously published." That's a projection, not a discovery from operation. Lithium: "we continue advancing the FEED study... Before the end of this year, we expect to have our joint venture in place..." Again forward-looking. Now, about the core business: Completion Fluids & Products segment performed well. "Adjusted EBITDA margins of 29.3%... driven by solid performance in our Industrial Chemicals business and growth in our offshore Completion Fluids operations particularly in the Gulf of Mexico." That's just reporting results. Water & Flowback: "We did experience some Water Services ramp-up costs as activity levels rebounded." That's a cost, not a discovery. CS Neptune: "our outlook continues to improve, as in addition to another job for a super major in the North Sea that is confirmed in June, discussions with two different super majors, for two different projects in the Gulf of Mexico continue to evolve for projects that are scheduled for the fourth quarter of 2024 or early 2025.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| WEC | WEC Energy Group, Inc. | Q1 2024 | 2024-05-01 | A |
| PDS | Precision Drilling Corporation | Q1 2024 | 2024-04-25 | B |
| ET | Energy Transfer LP | Q2 2023 | 2023-08-02 | C+ |
| IMAX | IMAX Corporation | Q2 2023 | 2023-07-26 | B+ |
| MEC | Mayville Engineering Company, Inc. | Q3 2022 | 2022-11-05 | B+ |
| MOMO | Hello Group Inc. | Q3 2021 | 2021-11-30 | D |
| CYBR | CyberArk Software Ltd. | Q3 2021 | 2021-11-04 | B+ |
| LOPE | Grand Canyon Education, Inc. | Q2 2021 | 2021-08-08 | C |
| EMR | Emerson Electric Co. | Q3 2021 | 2021-08-04 | B+ |
| TENB | Tenable Holdings, Inc. | Q2 2021 | 2021-07-27 | A |
| UMH | UMH Properties, Inc. | Q3 2018 | 2018-11-02 | C+ |
| XOM | Exxon Mobil Corporation | Q2 2018 | 2018-07-27 | C |
| MKTX | MarketAxess Holdings Inc. | Q3 2017 | 2017-10-25 | C+ |
| LIND | Lindblad Expeditions Holdings, Inc. | Q2 2017 | 2017-08-06 | C |
| BCE | BCE Inc. | Q2 2017 | 2017-08-05 | B+ |
| BP | BP p.l.c. | Q4 2016 | 2017-02-07 | B+ |
| INGR | Ingredion Incorporated | Q1 2016 | 2016-05-01 | B+ |
BP · Q4 2016 → YESThe question is: Does management convey that it is STILL DISCOVERING NEW UPSIDE INSIDE BUSINESS THAT IS ALREADY WORKING — both discovering new positive surprises from operations AND responding with re...YES The transcript shows management conveying exactly this posture in the Oman section. They recount a genuine operational surprise—“straight wells that we had not expected,” well rates “above plan,” and liquid production “higher than planned”—that emerged while the asset was actually running.
XOM · Q2 2018 → YESThe question is: Does management convey that it is STILL DISCOVERING NEW UPSIDE INSIDE BUSINESS THAT IS ALREADY WORKING — that in the course of actually operating, selling, or delivering in the recent...YES The transcript shows management conveying exactly this posture in the Guyana section. Neil Chapman recounts fresh upward revisions to resource estimates ("now more than 4 billion... up from the 3.2 billion... just 4 months ago") and the eighth discovery ("Longtail exploration well...
LOPE · Q2 2021 → YESThe question is whether management is still discovering new upside inside a business that's already working, based on recent operations, and responding with attention or resources. YES The transcript shows management discovering fresh upside in the GCU traditional campus platform through live operations: they built three new residence halls expecting no further need next year, but current registrations reveal near-capacity demand, requiring at least two more halls to be built.