RE:It makes you wonderTheres the fact that ATH has production roughly double SGY. in addition, it has far higher operating leverage.
Therefore, in a rising oil price environment, ATH is for the most part a superior investment. In a lower-more moderate oil price environment, I would go with SGY, due to the fact it has a lower operating break even.
Hypothetically, unhedged, ATH with an operating breakeven at 43 WTI (assuming $10 WCS differential), generates 70m in cash flow per each $5 increase in WTI.
@ $65 WTI hypothetically
65-43=22
22/5 =4.4
4.4 x 70 = $308 million
less 100m in capex = $208m in FCF
For a stock, with a market cap of less than $400m, thats pretty impressive. That being said, there is still refinancing risk weighing down on the stock, until we see some clarity regarding the refinancing of that 450m in notes due Feb 2022
Sheshe1234 wrote: With sgy not moving ,that maybe just maybe they are in negotiations to be bought out soon. So strange that we are .20 cents cheaper than Ath.to . But ath.t has debt over 450 million dollars. Any comments, welcome??!!