RE:Questions about CPG's waxy oil in Uinta Basin, its core areaIts true you can't dilute waxy oil and not expect it to precipitate on walls if the piepline is colder than the crude. Chemicals can be used to help, but you can still get a wax build up.
Waxy crude is better than asphatlc at the refinery, as the wax can be a useful by product or can be cracked.
It appears to sell at the same discount as the LSB (light sour blend) which is CPG's bread and butter.
They call it an emerging play - as in it only contributes about 12 % of revenue.
I was left with the impression that this area is not so much in focus and easily sold if the right offer comes around.
Will another impairment charge be recorded? Define big. Impairment is more a reflection on the asset valuation. Right now, cash flow is king (and probably will be forever). Management figures 400 M$ at $ 55 WTI, I think its add 40 M$ more for every dollar over.
Assuming oil can hold 64$, you can essentially double cash flow