RE:New PositionWelcome Helloworld.
I encourage you to check out OBE's heding position.
The lack of bad hedges is what is really going to allow OBE to pay debt faster then it's peers.
Alot of companies have a natural gas in the 3 something a mcf until March 2022.
Our hedge price from Nov - Mar 2022 is at 4.63 mcf.
Some 100 CAD barrels hedged until Dec 2021.
I added too my position today.
More details on 2022 should come out soon from the company. I am looking forward too it.
Helloworld wrote:
Took a new position today after selling Ath. FCF yield of Ath is just not as attractive after the runup. For OBE basic math is 59 MM FFO Q3 at 70 WTI. At 80 WTI it would turn to 72 MM per quarter, with higher gas price adding even more. Annualized FFO of about 290 MM. With probably a 90 MM capex to stay flat, means a FCF yield of over 50%. Debt and ARO will disappear quickly if desired with all the FCF.