RE:RE:RE:RE:RE:RE:RE:Obe Again Kavern, your analysis is backwards. If people aren't buying and driving new cars. What are they driving? You guessed it, old cars...
those tax pools are going to be very important next year. Everyone has lowered costs so much that the price increase has made them so profitable that a lot of companies are going to have a huge increase in cash taxes next year. That will drive M and A just to be tax efficient.
still not sure on how different analysts are calculating the value per share though. Pretty simple on an oilsands producer like MEG. The jump in royalties is easy to measure. Less clear on OBE but we must have among the highest pools in the e and p companies.
also the more I look at OBEs combined drilling and hedging strategy, the more I like it. Leave long term debt dropping steadily (23 million drop in Q1). Run an active drill program, let accounts payable balloon out and hedge for three months to ensure there is predictable funds flow to pay drilling costs. Weight the drilling program heavier during high prices and ease off into break up. Not anything ground breaking just a little more focused.