RE:RE:Hedge ImpactAnyone see those warrants trading anywhere?
Kupotea wrote: Your math is wrong. The FCF sensitivity is $70 M per $5 WTI not $10 swing in WTI.
That means there's a 40% drag above 67.5 WTI due to 13,500 in swaps. For each $10 increase above 67.5 WTI you can expect roughly 84 M in additinal FCF for this year. 70/5*0.6= $8.4M in FCF swing per change in WTI above or below in 67.5 WTI.
This stock is crazy undervalued. Also it doesn't even matter because the stocks value is based on the long term FCF generation this year alone really doesn't matter in the grand scheme of things.
My guess is that many of the new warrant holders are puchasing and selling on the open market. They came for the debt and the warrants are just a kicker so might as well sell.