RE:I’m bailing on thismartman 16
I don't know if you're making a "decent move", but I did exactly the same thing Friday.
I was bit blinded with CJ for a while, but after some quick DD last week, I moved to WCP (and VII for gas/liquids exposure). Murphy's law, both will go down for a month, I'm sure, but I like the cash flow profile on WCP better than CJ, and on gas front, I moved some from AAV to VII, to get more liquid exposure.
As a very basic metric comparison b/w CJ and WCP, i'm lookin at Q3 - CJ cf/s $0.24 with margin compression coming in Q4 to probably $0.12/sh, as compared to WCP cf/s $0.49 with less margin exposure into Q4 due to their significant portion of firm transportation commitments and better hedge book, plus ligher oil profile. Not a massive difference, but large enough. Going forward, I think the cash flow spread between CJ and WCP will widen, for all the factors mentioned before, which makes me personally feel just a hair safer in WCP than CJ. I'm staying long the sector, so I'm staying invested, as opposed to cash, but I'm concerned about the liquidity in these smaller cap names, so upsizing from 21k bb/d on CJ to 70k bb/d on WCP gives me bit more comfort level.
This should probably be on the WCP board, sorry folks ...
IMO