RE:RE:Meaningfully increases scale and scopeMy guess:
For $55, the price would over react but then settle around $4.75.
$65 - $5.00-$5.25
$75 - $6.50-$6.75
$85 - $8.00-$8.50
$100 - $12+
If oil stays over $100 for a few months, we are heading to the teens. You can see the leverage effect/torque in these prices. Most O&G companies are similiarly valued to each other, but this takeover has created one of the last opportunties for a triple or four bagger.
To make things more enticing, we get all this torque and at the same time a greater safety net with profitablity down to $41 WTI and a much larger footprint to weather a tumble below that for a prolonged period of time which will stabilize the share price in the event that happens which I don't foresee for the next 5-7 years at least.
As I was saying last night when I posted all the metrics, this is a really good deal for BTE shareholders and some excellent work by Eric G and the executive team.
Snowballer wrote: Exactly my point yesterday on the two EV'a less debt and dilutive nature. The market deal EV's less the new debt levels give you essentially the current price range.
$7 is aggressive imo but I'm sure factors in higher average oil prices. Would like to see a $55 to $65 oil price and related BTE stock price valuation. Anyone want to take a stab at it?