RE:RE:Recession is fully bake in on oil at 80 bucks!!tman47 wrote: Using various WTI price forecasts for 2023 and assuming a WCS differential of US$18 per barrel, MSW and LSB differentials of US$3.50 per barrel, AECO gas price of C$4.50 per GJ, and a foreign exchange of US.73 per C$, Gear is forecasting 2023 funds from operations (“FFO”) as follows:
WTI USnbsp; 70 80 90 100
FFO ($ millions) 69 92 115 138
Free funds from operations ($ millions) 8 31 54 77
On an annualized basis,
Gear forecasts its .01 per share per month dividend to total approximately $31 million. Assuming an annual production of 6,100 boe per day, that equates to approximately $14 per boe. As such, if WTI is at or above US$80 per barrel, the dividend is forecast to be funded with free FFO. Any future increase in commodity prices beyond these base assumptions will provide incremental free FFO which would be dedicated to potential future capital expansions, cash funded acquisitions, share buybacks and/or future dividend increases.
We should see a gap up in oil here ..
Good analysis Tman47..
SPR about to get refilled too..
Thats a whooping 220 millions barrel!!