GREY:TBTEF - Post by User
Post by
Papagalloon Aug 18, 2015 4:48pm
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Post# 24029355
A question of survivability for TBE
A question of survivability for TBECan TBE outlast a lower for longer commodity price? I believe the company is trading at extreme valuation based on sentiment not fundamentals. If oil were to trade to $30 and stay there (possible but unlikely), then most small producers will be gone in the next 18 months. TBE is stress tested for a $45 to $65 range for 2016 which seems reasonable. The 2H hedges will cover the reduced dividend, capex, further debt reduction, and provide enough time to plan for 2016. If oil should bounce to $60, as it did in April, TBE will triple from here as quickly as it dropped.