RE:RE:Don't sell more royaltiesSeppelt wrote: oilyexec,
I was thinking about it - it may not be needed if WTI stays above $60 and increased rail transportation helps WCS.
However, the co won't be able to meets it's debt/cash flow targets. Maybe they should quietly drop of relax those targets.
That is the thing, CJ now has options with WCS in the high $60s.
They don't have to sell any more royalties, instead keeping the cash flows that those royalties would have taken with them.
Their cash flow targets may not be hit today, but that extra cash flow can be used to bring the multiples down over time.
Trump seems to be determined to start something with Iran, as he has loaded his inner circle with war mongers. That has got to keep a risk premium on the price of oil.
And the Saudis need very strong oil prices at least until they can get that Aramco deal done.
So there is no reason I can think of to be selling even one share of CJ at this time.
JMO