Oil Bull-worth Becoming More Likely It SeemsInteresting article:
https://www.newindianexpress.com/business/2017/feb/27/funds-prepare-2-billion-oil-market-play-as-supply-tightens-1575283--1.html
My thoughts are $65 Brent by June and if supply continues to tighten it will climb significantly higher very quick. Remember that's an extra $10 to the already estimated $37+/bbl (using $55 Brent & $18 opex) Stella oil netback. This adds +27% more cashflow on ~3/4's of Stella's BOE's assuming the other 1/4 is gas. On strengthening oil price alone that justifies another $0.40/share to Delek's price ($2.35) let alone the value from further de-risking of Stella's 5 producers and that huge medium term value protecting $1.75 billion? tax pool. And what's the discounted value/share of such a massive tax pool in maximizing net after tax cashflow? Without running numbers I have to think that the tax pool alone has about the same value as a $10 long term increase in oil prices. Sooo....who besides Delek, IAE's Board of Directors and Warren Beatty thinks $1.95 is a fair and acceptable bid? Not an Oscar worthy acting in the shareholder's best interest performance. If Delek wants the best picture for them going forward a much better nomination is required before the effort "Is Gone With the Wind". The low ball offer has frankly left most of us shareholders not giving a d_amn.