Post by
indoubtgetout on Jan 16, 2021 2:31pm
$50 WTE+ CHANGES EVERYTHING!
Backwardation is the wall of worry. Likely to see WTE settle at plus $50 going into the fall unless of course the SAudi's have a bad hair day and flood the market again. That is why we have and likely to continue to have backwardation. The summer driving season is only a few months away and what a season it will be. Who can afford to fly with the airfares AC and WJA are charging. Airfares in the USA are more reasonable but likley to go up. So, bring on the driving season - it will be twice as popular than last year.
MUCH cheaper to buy than explore RIGHT NOW. With WTE over $50, valuations have certainly changed. Most mid to large cap energy stocks have doubled over the last year and stock prices are still 25%+ lower. WTE at $40 - ya, no premium. Most transactions of late were agreed to when WTE was $40. Now at $50+, we will have premium. Corporate cash on the balance sheet - do you buy bitcoin or make and acquisition?? Buy low or buy high?? ATH has allot of stuff - 20,000+ boepd per day and rampling higher, lots of attractive assets and they have reduced their operating costs to the minimum.
Lots of investors are substantailly underweight energy - many will want to catch up and fast. The big caps have all moved. ATH has allot of cash flow upside should WCS stay above $40. Along with this cash flow upside comes a much higher stock price.......WOULDA, COULDA, SHOULDA?????
Comment by
fellowship on Jan 17, 2021 12:19pm
They will be fine. People who worried at .10-.12 should not worry now.