Post by
Tradestay on Nov 08, 2022 12:25am
TODAYS DEBT RESUCTION AND FX UNDERSTANDING
BTE Q3 debt report was approximately $48M CAD higher due to 10 cents higher FX rate, 1.37Q3 exchange rate on $473M USD. Since BTE reported Q3 numbers USD/CAD dropped 2 cents which means BTE debt in CAD went down approximately by $10M CAD. Simple calculations would tell you if they had not bought shares Debt would have been below a billion easily. Now the question is why would management buy shares now? I think its because they believe this oil cycle is just getting started and the share is prices well for NCIB. Also they might be betting on future taxes on buyback so they would want to avoid that as well. $90 oil in 2023 is $950M free cash flow. Lets see the plan is working thus far and il price is supporting the plan. Recession is the biggest headwind but they are mitigants at work sanctions on oil producers and OPEC cuts is the two biggest mitigates. Think about this as a closing, after the US draw down SPR by over 200M barrels oi is still at 90 plus and driving season s behind us in North America, what does this say?
Comment by
Tradestay on Nov 08, 2022 12:27am
I MEANT TO SAY REDUCTION but its really Fluctuation.