RE:Wcp to bteBTE has good production just like WCP. BTE has more opportunity for growth with their clearwater play than WCP's older, boring assets. But most importantly, BTE has a lot of debt which suppresses its share price in a rising oil environment until oil gets past a certain point and is sustained. For BTE, that's above $60, and we have been above $60 for some time.
Contrast with WCP which has low debt and is a stable dividend payer. It is fully valued on those merits. It had its runup out of the pandemic crash in 2020 as it does well with sustained prices above $50.
BTE is just catching up to its free cash flow projections. WCP was already priced there in 2020.
The debt cuts both ways though. If WTI drops below $60 this winter, WCP might lose 15-20%, but BTE will lose 50% or more. On the other hand, if oil rises above $80, BTE will see much more torque with likely a double from here vs wCP which might only see 15-20% appreciations.
The beta is much higher with BTE.
1001001 wrote: Comparison is striking. Feb 1, 2020. Since before big crash BTE is up 95%. WCP is up only 20%????? In my opinion This is absurd even if WCP didn't even make those supposed accretive acquisitions. Can anyone clue me in on what I might be missing about Bte? I hold none of that stock.