Premarket bids $1.43Even with oil up looks like consolidation. What happened to the "to the moon guys" in here. No "takeoff and rocket to the moon today." How about the "$2" close! "$3 by summer and "$5" in 6 months. Never mind what you think BTE should trade at it's what it actually trades at and that is $1.40 something at $65 oil.
If the crystal ball aligns and oil stays and averages $60 for the year BTE can pay off about 1/6 to 1/7 of their debt, $500 million is owed in three years so they need $60 oil for 2 years to pay off that $500 million and actually build a base so they don't have to dip into the credit line.
At current value they are valued at about 2.5 times current cash flow. That's on the forward strip. I don't see how that number drastically changes, the only way the share price substantially goes up is if the oil price jumps dramatically from here.
If oil were to average $100 this year based on that price and a 2.5x value from cash flow BTE would be about $3 a share. Only when debts are squared will it go any higher in my honest opinion.
Also, if oil is back under $60 or $55 I think we flirt with a buck.
So $1 before $2 in my honest analysis.