GREY:WFREF - Post by User
Comment by
aaaaaarghon Jan 07, 2014 7:31pm
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Post# 22067734
RE:LRE and Oil Prices.
RE:LRE and Oil Prices.I would say that it would NOT be at significant risk of folding. First of all, most market swings of oil tend to be short term. Second, alot of the oil price is hedged to prevent price swing hits to the company (conversely, this can hurt growth if oil were to go up as well). Lastly, they produce at much less than $80/ barrel. The first thing to go would be the dividend and spending on growth. We also don't know what would happen to the crack spread for alberta oil, if WTI were to go down to $80. I suspect the spread would narrow. Finally, LRE has alot of nat gas production and liquids as well, so it would depend on those prices as well.
There is always interest in buyouts of smaller companies. To say when and to whom this will apply is a crapshoot, but LRE is always a possibility....
The bigger question for you to really ponder is whether or not you want to invest in a strong dividend paying company or if you prefer to invest in growth stocks, and that is a personal choice...