Operating costs now $37cdn, includes $4/bbl to upgrade
Where did all the COS bears go?
To provide some insight on the significance of $37 operating costs, you will want to look at what Canadian Synthetic Oil prices are trading at:
https://www.psac.ca/business/firstenergy/
As of yesterday, SCO pricing in Canada was $56.53. So even at $42wti, COS is earning $20cdn per barrel of postive cash flow.
That is a respectable operating margin of 35%. Let me remind you, this is at $42wti.............
For all the school children on these message boards who pout and fuss about tendering their shares to SU, you can now see that even at $42wti, COS is an independent champ and SU's welfare pricing would only appeal to someone who believes oil prices are headed lower for a prolonged period.
For the board to accept a bid from SU, it will have to be north of 0.50
And lastly, a company with 80 years of PPP reserves is valued on long-term oil pricing, not spot price. A more reasonable long-term price for oil will be $70, the break-even of US shale. At that price, COS is worth more than $20cdn per share.
For details, you can thank Kurt Wulff's analysis for free here:
https://www.mcdep.com/cos151027.pdf