RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Spread between BRENT and WTI continues wideningHedgieTdot
My apology for " you guys ". Didn't mean anything specific.
Concerning pricing , youbare correct we need more clarification, but we all know it's linked to Brent, and there's a differential or discount, it doesn't really matter because let's say they break even at $30 Brent even if they sell for less, so if Brent goes to $52 then they make $22, even if they're selling at a discount to Brent.
They did go through a tough time in 2014 , but thats the whole sector. A bit amplified with Pta because they acquired Surocco and after that the blockades !!! So it was a double hit !! And at the end of the day they do have a great balance sheet for a small E&P !!
Cash will not erode in 2015 like you might fear will happen, plus they had an increase in G&A because of the acquisition, those numbers should come down in 2015.
unfortunately it's a time issue and sometimes that's the most painful, especially if you have been in the stock for a long time. I have been in PTA less than 6months and kept averaging down, and I plan on staying here for another year or two. I do believe in the next two years they will pass 15k boepd and I do believe Oil will go back to the $80 range by then and I do believe that I will sell PTA at a very decent profit !!
Cheers