OBE BNEBNE has been trading up with OBE in the last few days/weeks.
I tend to dimiss BNE's trading given that its usually very thin, and controlled by one person who can easily manipulate the price on any given day.
On a day like today however, I decided to mention it.
Today is a little different.
BNE has hedged most of its production with a upper limit around $92 if I remember correctly. ie, when near term oil price increase beyond that limit it does little for BNE
OBE on the other hand, has less hedges, and those it does have are very short term. ie OBE is much better exposed to upside oil price movements.
Today was a good day in general, but is was particularly good for OBE - up about 10%. Several times that of those more popular in the market - CPG, BTE for example, up a little under 4%.
That alone suggests to me its a bit of a catch up day for OBE.
But then look at BNE - up about 14% on heavy volume of about 950,000 (ie that was not thin volume manipulation).
OBE are presently fairly similar in terms of FFO per share - but OBE has much better prospects this year - less hedges, so able to benefit from the present high oil prices, and a huge exposure to now extremely profitable, and rapid payback heavy oil holdings.
I can't help but wonder if there is a reason why BNE has caught back up to OBE, that may involve some sort of combination. Who knows. OBE was an admirer once before. What else could propell BNE's share price? Its basically OBE light.
OR maybe they both just happen to determine performance bonuses based on end of quarter share prices..................