RE:RE:RE:RE:Hedging I have also pointed out a major and purposeful flaw with the nutsac chart. He uses $60 oil which is at least a 10% premium to reality when prepared that chart but he uses "strip" prices for nat gas because the strip is low. So, the right side of the chart is gassy names. Translation ....his next move is into gassy names and his charts will use LNG export prices. Haha.
2020oilgamble wrote: There is that of course.....
On the flipside of the coin....he published the graph with your pointed out flaws....that only the experienced and knowledgeable would pick up.....
So....bte is lagging because 'he wants it too
Propaganda...
riski wrote: This Nuttall analysis is overly simplistic though. What you see is a trend of more heavily leveraged names to the right of the graph. So yes, it would take longer at $60WTI to buy their own company (weird way of looking at things), but that also means that they will have more torque to increasing oil prices relative to names on the left of the graph due to that leverage.
Leverage cuts both ways, and right now, it is cutting BTE too much to the negative. It will flip soon and rerate.