RE:RE:RE:RE:RE:RE:Hedging with a Purpose1) The larger than peers SBC and what management does with it is clearly not in the best interests of shareholders but they continue doing it.
2) Not significantly or opportunistically hedging oil or gas makes no sense in these volatile markets. They are taking unnecessary risk but they steadfastly stick with their plan;
3) and prioritizing gas plays (drilled first, used oil cashflow and/or debt to pay for development) over oily plays even though oil is what pays the bills.
4) reporting doesnt provide the best picture of the company. A better map of the territory would be to include condensate with oil like everyone else and to split production, netback and capex between oil (Wembley, Charlie Lake, other) and natural gas (Oak, Pouce Coupe West, other)
I'm still holding because based on reserves Wembley is a really good asset (Charlie Lake etc is ok but nameplate wise its 30% with only 2 zones). Those 2 oily plays are both 40% + oil.
5) Also, once the CSV plant is fully operational, and if WTI stays above $75, they'll almost certainly have more cashflow than they need to develop the oily plays (as the bottleneck is 3rd party plant capacity) and should institute a dividend. The sub plot of a dividend is mgmt would get paid too which they would highly probably invest elsewhere than Kelt.
I appreciate the kudos but tbh, this is all Captain obvious stuff, no real insight here. Lets be real what I am at this stage is a bagholder.