RE:Q1 market reactionWTI is going to climb. ESG means nothing in oil stocks. They will never be thought of as green. Shareholders want money for buying oil stocks. They have increased their earnings and value of their assets. This is positive news. Throw 200 mill towards their debt when refinancing instead of just sitting there when they have lots of free cash flow will be extremely positive. The market is a now player and wants to hear this. 1 billion minimum is a bargain for assets. 550,000,000 shares at $1.35 gives $750,000,000 plus $250,000,000 in debt. Thats fair and cheap valuation if you hedge every barrel at todays prices.
Funds are billionaires, you have to think likea billionaire. Is there better opportunities for their money? Less risk? More reward in dividends? With the debate about which oil companies is better set up for increases based on oil prices is the same debate billionaire funds have. Which fund choses ATH nobody knows. For me, ill take ATH company that can be debt free in a couple of years and pay me a ridiculous dividend for 30 yrs without exploration. Easy multi bagger over time.