GREY:WFREF - Post by User
Post by
Reddaleon Jun 03, 2015 7:51pm
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Post# 23794906
Spread between West Texas Interm & Western Canada Select
Spread between West Texas Interm & Western Canada Select
I understand that the price spread between WTI and WCS has narrowed substantially since last June.
If that is correct the price Canadian producers are getting for their oil may not be hugely different from last year's pricing, couple that with gentle up tick in oil price and Canadian dollar down a bit the income stream should not be 40% less (ie $110 - vs 65/barrel) .
Hedging of course softens the blow yet again.
Nat gas is probably a different story and LRE has lots of gas exposure.
I got caught off side on this one and I am hoping for the best.
Red