RE:I`m loaded to the gills in this...BTE made $70 million in Q1. Oil has been higher Q2 so if it holds to the end of the year they can make $400 million potentially. 575 million shares outstanding or so. That's approximately 70 cents per share in free cash flow. At a 5 times P/E ratio that's $3.50 per share. Maybe we get there by January 2022 if oil prices stay here. Also, the company owes $400 million in 2024. If oil holds at these levels we can pay off the debt potentially this year. But if oil sinks back to $55 or $50 it's tooth and nails again to just survive, and not thrive. At $55 oil it's 200 million a year or about 33 cents per share in profit. At a 6 times p/e that's a fair market value of about $2.
Oil was devastated the last 10 years so investors want proof this will last. Too much negative sentiment that oil will go back to the $50 range with the variant.
All this nonsense about earnings won't make a difference because the market is ok with a p/e under 5 right now.
I honestly think it's going to take years with $65 plus oil to get reevaluated. The 50 cent flash crash the last three weeks confirms this. Until BTE proves quarter after quarter it's making money we are stuck with a low evaluation. The market won't accept projections, they need to see what it actually is for years to come. So even if oil averages $70 plus the next 6 months I don't expect much of a reevaluation.