RE:RE:RE:RE:RE:RE:$89 oil is a sweet spotWhen Nuttall says "The price of oil does not have to go up for the stock prices to go up" this is what he is referring to.
He has been saying this since $70 WTI.
riski wrote: That reply was to someone else. We are on the same page, I think.
The point I am making is that this is not a yo-yo investment that goes up and down exactly like the toy. While WTI sits above $70, BTE is making a LOT of money even with hedges and will make even more money in 2023. That cash has value independent of whether WTI drops to $70 next year at this time (which I doubt).
Consider if BTE decides to do nothing with its FCF and just puts it in the bank at standard interest rates. One year from today, they have $1 billion more dollars on the balance sheet and oil drops to $70. Do you think the stock will be worth less than today?
If an investor doesn't understand this concept, I can understand why they are buying and selling all the time as WTI fluctuates. They think the two are married to each other. Instead of the WTI tracing, it's better to think about the area under the WTI curve. That's the bounty we are after. Where the price spikes to or fluctuates doesn't matter because each day that goes by above $70 adds to the area under the curve and increases the value of the company.
scienceguy36 wrote: I have read BTE financial statements in great detail.and in spite of what has been said on here to the contrary. BTE is getting $67.71 per boe on 40% of its crude production for the remainder of 2022 (if oil stays above that amount). So, the higher the price of oil the more they will make on the the unhedged barrels. Lets keep it real!
That being said, this is probably a good time to buy BTE is you plan on holding it for at least a year.