RE:RE:RE:HedgingSorry on my last comment,
(based on 70kbpd X 365 x $17 =) over $400M annually ****per $1 over $50***.
So with an average price of $65/bbl that is free cash of $15/bbl * 400M = $6.5B or $26/share/year
How on earth can a stock capable of earning $26/share be worth only $3.74?
This is where hemorhaging cash begins and why banks stay in the game financing these plays..
orlandofl wrote: Purveyor wrote:
OIl at theis price hasn't set a new floor. When we creep up to these levels we often get a roll back. For many who have gotten burned, Its hard to commit investment $'s even though the price is climbing. Bit once, twice shy.
Many buyers wont jump in until much later.
Buy and hold. OPEC says $80 oil.. $80 it will be..
Back of the envelope calculating ... Just sit back and wait. BTE clears $17/bbl above $50 (as disclosed by management). At that point BTE will be earning, say an average price over $65 with Brent at $80 level oil, BTE will be netting (based on 70kbpd X 365 x $17 =) over $400M annually.
A far cry from the money losing positions of the past.
even though I think it is a screaming buy I am sitting tight based on how much I have been burned in the past - I have a little over 50K BTE - not sure exact number of shares - but I am pretty sure I am under 60K and MRO I have around 40K or just over that - that is my largest holding and that did nothing today - traded flat - it hit a recent high of mid 19's when oil approached $67 and now with oil creeping toward $69 it is just over $18 - should be over $20
it may take new buyers to come in to get these moving and it may take a couple quarterly reports to affect prices more significantly and/or acquisitions always help - if oil hanges in there and oil stock prices don't move - companies like VET will benefit by making acquisitions - they made two acquistions at what I think are favorable metrics and in a timely manner - if we see a few more acquisitions that may help heat things up and if there are oil disruptions and/or conflice in the middle east potentially affecting supply we could see oil go higher
if we get $75 WTI one would think we have to go higher - if not than the companies themselves can start buying back shares once they have their debt levels in line - meaing severly reduced or eliminated