RE:RE:How Much Longer
ERF today, is a good example of what to expect from OBE tomorrow (well mid next year).
ERF has similar Funds flow per share to OBE, but ERF is $24/share, vs $9.67 for OBE.
The difference is that ERF is a little further down the debt repayment ladder. ERF has reached that point where it is using much of its free cash flow to return to shareholders (in share buy backs and a small dividend)
OBE will hit that same point 1-3 months from now (big variation because of the usually low oil price right now). Once OBE gets to where ERF is now, you can expect OBE to achieve a similar mulitple (ie share price) as ERF has now.
That means OBE may go from $9.67 to $24 ish...............but how much higher will ERF go during that same period? ERF may increase if oil prices increase, or it may stay the same if oil prices stay flat.