Post by
NonCredibleSrc on Jul 06, 2022 10:59am
WCP value
Have to say, I am impartial to the XTO deal - I like the growth option - the trouble is the timing. Purchase completed at a point where oil is at it's mx - since then down it's down $15-20/barrel.
It could have waited until the price of oil was at least stable.
My concern now is where do we go?
I cannot believe we are going to continue to drop the cost of a barrel. O&G stocks across the board are flailing even now on oil that sits in the mid 90s...
Not much makes sense in the market these days. Too much big investor influence amplified by too much media (legacy and social).
Comment by
Olliethegoalie on Jul 06, 2022 1:26pm
The view that oil was at it's max is always the question. Yes it has dropped a lot the past few days but this will lower prices at the pump and may convince people to go ahead and take that summer trip. Let's see what July 1 to July 4th weekend did for consumption. In my opinion, I still believe in the $110-$130 per barrel range so I am not selling at this time.
Comment by
ppp on Jul 06, 2022 2:29pm
Looks like WCP management is still buying, so they must agree. One thing I have to say right or wrong WCP managemnet is working for their money. Like the saying goes those who make no mistakes never do anything.
Comment by
Olliethegoalie on Jul 06, 2022 3:15pm
I like the investment vs return of FCF balance. I wouldn't want to own only companies that are returning 100% FCF. If you can buy an asset and get a solid FCF immediatly, and, for a long time in the future, is certainly my preference. If we stay at $100 oil and elevated Natural Gas prices, we should reap the rewards for this aquisition for a long time to come in my opinion.
Comment by
ppp on Jul 06, 2022 3:52pm
Agreed. Thats why I moved most of my investment dollars here in the last few days.