RE:Capital Expenditures 1st QTRThere is nothing unusual about doing the majority of drilling in western Canada during the winter months of Q4 and Q1. In the spring when the county activates the road bans, moving rigs becomes impossible without damaging the roads. Drilling activity slows down to a crawl at this time. This typically lasts from mid to late March until June. As of March 21st, the excess cash flow not being used for drilling is being used for share buybacks and debt repayment. That does not show up in the Q1 results but it is definitely happening.
https://stockhouse.com/companies/insiders?symbol=t.bte Many of the great wells that BTE drilled during Q1 at Peavine and elsewhere will not be completed and brought on line until late Q2 or Q3. Some investors are not aware of how this cycle plays out each year in western Canada. Going full speed ahead with the drill bit in Q1 to get ready for the opening of the TMX pipeline on May 1st was the smart thing for BTE to be doing.
Last year the share price of BTE appreciated over 60% from late June until October. Will there be another similar run this year? Probably. Summer driving season happens every year in the northern hemisphere. If OPEC decides to continue limiting production at there next meeting on June 1st, that could be a major catalyst for oil prices this summer.
Time to sit back and relax. You can tell by the volume today that full panic has set in. Hang on to your shares. There will be better days ahead during the next 3 to 6 months.