Unable to capitalize on current oil pricesAfter reading through at least a dozen Q2 financial reports it appears their are several companies that are unable to capitalize on the current high oil prices. BTE appears to be one of those companies that will take at least until Q2 of 2023 to get their balance sheet in order. With hedges, large debt, and large share float returning equity to shareholders should not be a priority with this company until they get their house in order. I expect shareholder money to move from these type of companies to ones that are already in a good financial position to return equity to shareholders immediately. ex - CJ comes to mind.
If oil prices stay elevated then companies like BTE that have robust oil production and great drilling locations such as clearwater will see some of this money coming back in towards the 2nd half of 2023.
I understand that for some shareholders the option of bailing on over hedged companies like BTE would entail a large loss so will have to wait until these hedges come off and hope oil prices stay elevated.
JMHO ..... GLTA