Oil price for Canadian companies continues to increaseProvided the price for Canadian oil continues to increase at some point the market will see the value here and the stock price will take off! See below calculation for May delivery crude for SGY. I used May as that is where the most volume is being traded at this time and although spot price is slightly different, May is the front month where SGY would be currently selling their crude.
WTI May - $61.42
WCS discount May - $23.25 ( 66% of crude sales SGY)
Canadian Light discount May - 3.50 (33% of crude sales SGY)
US Dollar - $1.3065
When I use the numbers above SGY is currently getting $58.47/ barrel not including hedges in place! So current prices are better then the Q4 average. I think we can expect even better numbers for Q1 - 2018 then we did for Q4-2017. Also if the Canadian dollar continues to fall and the differentials continue to shrink as expected, we should have a great year here with SGY!
The market will eventually see it for what or what it is, at this point i’m Grabbing every share I can financially afford!
Have a great day!
Kid