RE:Keystone Other than sentiment there is very little connection between Pinecrest`s oil sales and the Keystone pipeline.
Pinecrest sells all of its production to Shell using the Net Energy Sweet as a reference price.
You can track Net Energy Sweet here:
https://www.dailyoilbulletin.com/, today it closed as follows:
| Net Energy Sweet Closing Price* |
-$5.00 |
USD/BBL |
$96.24
|
*It is referenced to WTI, the discount bounces around quite a bit, yesterday it was -$2.50, a couple of weeks ago it was a premium to WTI.
I just heard that the company is moving a rig into the field next week. I was concerned that a wet spring would delay their plans. Catalysts for Pinecrest will eventually come in the form of production. Certainly Q2 will be weak, but not necessarily weaker than planned - it is simply a fact that they have to sit on their hands from early March through early July each year while daily production naturally decays.
Their budget was based on an $85 CDN revenue per barrel, looks like their unhedged barrels are pulling close to $100 cdn. About 50% is hedged at CDN $90 to $94.5, so the impact is somewhat mutted, but still very positive.
Terr