RE:What percntage BTE oil is WCS aokay wrote: Hi everyone,
I think BTE share price is being disproportionately punished due to gap in WCS and WTI price. Much of our oil production is from US. Does anyone know what percentage of our output is sold at WTI vs WCS prices?
Thanks for any thoughts and input,
Aokay
of the approximate 90K barrels a day, now
40% from Eagleford - roughly WTI + $4 (36k of 90k)
25% Viking - roughly WTI - $8 (23k of 90k)
WCS - roughly 30% - (27k of 90k)
they are expecting produciton of over 100K barrels a day next year with exit guidance of around 105K barrels a day - that increased production would likely be Duvernay (light oil or other non-WCS unless WCS goes up)
so if you increase production by over 10% you would decrease WCS exposure by 10%
Eagleford has the largest production and best pricing
Hedges have been bad and are at lower prices and they start to unravel by the end of the year with considerably less hedging and the heging that they will have is at leastr $10 higher than current hedges
they are setup to do very well if oil stays in the $70's - debt will get paid down rapidly - and free cash flow would be over $700M and depending on where oil is it could be much higher - I believe at $55 they still have $100M free cash flow