GREY:TBTEF - Post by User
Comment by
Nawaralsaadion Nov 28, 2014 2:37pm
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Post# 23174975
RE:My Latest Article From Seeking Alpha - Twin Butte
RE:My Latest Article From Seeking Alpha - Twin ButtePM great article on TBE. I believe your outlook for WTI is conservative and there is certainly room for a positive surprise in the next 24 months. I have added to my TBE & PWT positions this morning.
Also, I would like to point out an error in your PWT calculations, PWT cash flow does not dip to $243m, but at $63-$67 WTI, it will be in the $700m to $750m range thus brining D/CF to the 4 range and not 9.9. This does not account for any potential asset sales over the next 12 months. I believe it is a mistake to associate PWT fundamentals and management with LTS, they are not even in the same league.
Having said that PWT certainly entails more risk than TBE at this stage, however the upside is equally asymmetric between the two. TBE is an excellent stock to collect double digits income and PWT is an excellent way to generate a substantial capital gains at the other side of this decline.
Regards,
Nawar