RE:RE:RE:RE:RE:RE:PerspectiveHeavyBanana wrote: To preface things on "demand destruction" and prices going too low (presumably meaning below $75) equating to a much longer time frame for debt reduction and share buyback sounds logical but it has a built in assumption that demand destruction caused by a tipping point high price per barrel would create a price shock to the downside that goes significantly below $75 before the company has lowered debt significantly.
To the extent that a runaway price per barrel to the upside would bring on demand destruction, it does not form a steep and direct line to sub $75 per barrel par se.
In todays oil fundamentals, demand destruction would likely normalize price per barrel back to the range between $75-90.
So let's reap in the massive cashflow if and when oil prices run away to that demand destruction tipping point and enjoy everything in between just as well within the $75-90 range that is all but a given for the foreseeable future.
I think Baytex gets bought out well within the next two years and it will likely manifest itself in the period between now and any perceived tipping point to demand destruction one can conjure up.
Last July oil was at $120. This July oil was at $63. It might not go down in a straight line but it was pretty darn close.