RE:RE:RE:RE:The set up...Wink Wink...BERationale wrote: They are turning probables and contingent resource into proved reserves everyday with their drilling program. Agreed if they didn't spend any money it would not be sustainable but their revised downward capex and flat guidance speaks to the efficiencies they are seeing and the sustainability of cash flows. That coupled with pushing out abandonment liabilities and utilizing the Kris tax pools should result in a meaningful lift to year end reserve NPV's.
I don't know, what you guys are talking about. NO finite ressource is sustainable. EVERY oilers inventory will come to an end. So the question, you should ask is: What's the value ?
Sure, you can buy the peers with permanent overleverage/debt, who recycle the equity, to let the music play a little longer...the problem with "little longer" is...one day, they will stumble into an oil bust cycle and any value will be gone. It's not a question of "IF", but "when".
Here we have a close to debt free company with a visible end date...(with optionality, that they're able to continue longer, than anticipated). They can harvest the stuff more or less down and end up with far more cash, than market cap. The window for an oil bust cycle is much smaller. I would call it more sustainable, than the acting of the pro cyclic peer clowns.