sentiment will turn ... one of these weeks. Last year we went from mid $3s to $6 between April and May and there’s no reason it can’t happen again (although I’m predicting a slower more gradual rise in SP over the summer), especially with oil prices expected to continue to rise. Don’t be surprised if WTI is around $65 within the next 2-3 months, which at that level BTE is earning ~$400 FCF. Throw it all on debt this year. Next year easily able to buy back some shares since debt will be under $2B and ratios looking much better. Pray for $65+ WTI for the next 18-24 months (I don’t think that’s that much of a stretch considering demand is expected to stay very robust and theres only 1 country that’s attempting to meet this growing demand but will struggle to do so on its own, Saudi won’t help this time) and that will go a long way to completely transforming this company’s rep. The only thing I can see getting in the way is the unlikely event that the economy completely collapses or there is some sort of tragic event that disrupts global population but otherwise shale won’t save the day and Saudi needs $80 oil which is the single most important sentence in my entire ramble.
BTE monthly average SP prediction:
April: $2.65
May: $3.25
June: $3.75
July: $4.40
GEAR energy will hit $1 by July.
I do see a repeat of the “slow and steady” WTI rally just like last few years, no real huge leaps but a couple bucks a month with the odd down week to retest resistance for the foreseeable future. WTI back on its gradual upswing . Time will tell but we are sitting just fine and people should be discussing the great potential with BTE and other CANADIAN energy companies rather than running away scared. Buy low. Buy low.. hellllooooo? Name of the game is it not? I can’t get enough money in these beat up producers at these prices
GLTA
cheers