RE: "Comparing BTE to PGF; WTI sweet vs WCS Heavy crude"Nessrookie wrote: Let's just compare Bte to pgf. Pgf is all heavy oil. Had huge debt maturity coming and close to violating its debt covenants
BTE is half (the highest open market margin oil you can produce in the world and half heavy oil. They have no major debt due till 2020 well under debt convenants
PGF down 12pct from June $2.45 levels
BTE down 35pcf from june $7.40 level
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As a contrarian, I love to see the differentials. Thank you!
I think BTE is a great candidate to short when oil is trending down. But, as the historical charts indicate, we're ready to lift off if oil is ready.
BTE is spring loaded again. If we break $50 and head closer to $60, we'll likely be in the double digits faster we realize. But if oil fails to maintain this solid floor, we're going down hard. That's the risk.
I would not call it that much of a speculative stock at these price levels. Management is not in trouble and can continue to optimize as well as they have in the past. They have done a great job so far.
I can't speak for everyone here but it would seem we have a bullboard concensus on:
1. BTE is tied to WTI (more specifically Louisiana Sweet Crude)
2. On top of this, BTE is highly leveraged. So when it goes down, it's hard. But when it goes up, it's high and fast.
3. As a past mega bull, I don't want to get overly excited again. So I mentally prepare to go either side.
Although BTE is my main oil and stock, I can't find a good number 2 & 3 who would be springboards for $50+ oil?
Is CPG a favorite? They should start agressive acquisitions soon if history repeats itself.
I know some traders like UWTI and HOU but any others? Any favorites to ride an oil bull?