RE:RE:Nuttall bnn tomorrow Erf is hedged nicely for their guidance production/cf but the economics in completing the ducs and further drilling are there at prices above 60$. This turns into an oil growth story at higher prices. All unhedged upside.
You can say the same about cpg/wcp/cj etc but they are significantly more expensive today compared to Erf on a cash flow basis. The Canadian dollar strength doesn't help like it used to either. Balance sheets are also preventing asset deals without financing. ERF's $400mil at 2.25% was a nice piece of business around Bruin.
The risk around dapl is manageable, the price is right, and the ability to do further consolidation in the North Dakota makes this a long term no brainer.