RE:RE:RE:Re: Hedging Bought my first position in sgy last week. Will likely add this week. Looking to sell SU and buy a lighter oil player. SGY or CPG fits this.
sclarda wrote: Playsmart wrote
SGY survived cos of hedging otherwise when oil price dip down after Russia and Saudi Arabia spat in 2019. SGY might be go bankrupt that time. We survise cos SGY was having good hedging for 6 monthes after that.
Bad hedging for 2021 and ARO is story of almost all canadian oil companies. SGY production was down cos they sold 2700 barrels per day to save this company from bankruptcy
Hope somebody should have crystal eye to see oil market ,would bounce back that fast then hedging senario for all canadian oil patch might be totally different.
Repeatedly same irrelevent posts again and again on this bullboard does not make any sense if you don't own this stock.
I am pretty sure that buying other oil companies to add production and dilution of shares in this year might be tough but would bear fruit in 2022 for company and share holders as well.
GL to longs.
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"Repeatedly same irrelevant posts again and again on this bullboard does not make any sense if you dont't own this stock."
Exactly. Sound and fury sounds like somebody who lost a lot of money in the past investing in SGY and now he hounds this board endlessly repeating the same b.s. like a little bit@ch because that is all that nasty angry bitter people like him know.
SGY has had it tough over the several years as all oil companies have. What looks in hindsight like mistakes would have looked like genius if oil prices would have stayed at $100 where they were several years ago. It is very easy for armchair quarterbacks like him to be critical of everything in hindsight.
Investing is looking to the future and SGY has been making good aquisitions this year by issuing shares and not taking on more debt. By doing this they are becoming a much larger and lighter oil producer than they were with debt staying the same making the debt smaller in relation to cashflow.
Debt should also be coming down in the second half of this year and as of next year when the hedges roll off SGY at $80 oil will be bringing in a lof of cashflow and debt will be reduced very quickly.
If oil were to stay around $80 next year SGY would have free cashflow of aprox. $160 million. The current market cap is around $370 million. That means if oil stays around this level next year those buying SGY shares today will be getting a Free Cashflow yield on their shares of over 40%. At 8 times Free cashflow that would equate to each SGY share being worth aprox. $17
SGY has had a tough time over the last several years along with all other oil companies. They have not rebounded as much as many others because of their high debt and bad hedges for this year. All that is changing quickly as their are only two months left in this yearand the low priced hedges and if oil prices cooperate next year as looks promising 2022 will be a very good one for this company and its shareholders.
And bitter angry people like sound and fury will be even more bitter and angry as he watchs everyone but him make a bundle with SGY.
That would look very good on the schmuck.