RE:2022 WCS hedgesGood point.
Right now WCS is trading at $62, so these hedges are only $7 to $8 below market.
I don't know of any other company that has their hedges for '22 so close to the market at this stage.
Second, as good as the quarter was, they realized $28M of hedge losses in the quarter, on hedges $25 below the market. That's pure FCF out the door since they are non taxable.
When those hedges roll off, and the new hedges are getting the same price for WCS that the old ones got for WTI another big pick up will occur.
$600M FCF over next three years at $70WTI. $130M per year more at $80 WTI, which would be:
$990M FCF at $80
Net Debt ~ $200M CAD at year end, and $500M Market Cap.
Any other companies with a 30 year RLI that can generate > Enterprise value in Free Cash Flow in the next three years?
If you know of any, please let me know!