GREY:BXEFF - Post by User
Comment by
Steelhead15on Dec 22, 2014 7:42am
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Post# 23255253
RE:New post on Seeking Alpha with strong buy recommendation
RE:New post on Seeking Alpha with strong buy recommendationI read this Mulligan. Interesting piece. It's like BXE has a party going and several outside investors are onboard. Trouble is, oil is so low and NG locked in so tight that bold options are limited. None of us want action for its own sake. It needs to produce an increase in SP.
The Bakken produces the best light sweet crucde and because of transporotation it sells for a net of 25% less than other top oil plays. What can BXE do when it is further upstream with similar transport issues? I guess longs at BXE are waiting for oil to increase of the US to decide to use more NG. BXE is well run. I can no longer blame management for a problem beyond their control.
Maybe a safer play is O&G located closer to refineries. Also, those companies with less debt, smaller cost for D&R, in other words a company which can make money at lower prices. I've been reading a bunch of boring analysis from all over NA. It would seem the SE TX and W TX Permian are the safest options.
If I am going to adjust to lower pricing, it makes sense to take a tax loss hit on BXE now while I can. Then swing to the Permian or Eagle Ford. I hate to quit something I like, but I also dislike losing cause I'm stubborn.