Believes reason for oil price sell-off is difficult to explain. Large difference between financial & physical markets for oil. Overall, oil demand is growing (highest ever), but paper demand for oil has reached all time low. As a result, large discrepancies in the market for oil are developing. US shale not growing - which will also help further strength in oil markets. $65 oil remains lowest price for no growth in markets. Is optimistic on overall outlook of energy markets. Bearish outlook for oil markets not justified. Expecting a ~$80 WTI prices going forward.
Believes company is reaching final debt target in ~October 2024. Will pivot to 100% return of capital. Trading at 11% free cash flow yield at $70. Expecting a $40 share price at $80 oil. Large amount of reserves that will allow company to continue excellent capital allocation strategy. Continued share buybacks are very good for investors. Market currently ignoring hidden value in company.
Company has hit guidance targets 3 quarters in a row - out of the penalty box as a result. Pure play on Clearwater/Charlie Lake oil plays. Wells are paying our multiple times in ~2 years. Very economic oil metrics. Trading at a steep discount to NAV and cash flow multiples. Would recommend buying at this price. Management buying stock aggressively.
Will continue to own stock. Excellent company with quality upstream production. Downstream issues continue to be an issue. Overall, business moving in the correct direction. Other companies like Suncor have been attracting like minded capital from investors. Very good management that has experience to fix downstream issues. Company also will reach final debt target, and will return 100% of cash flow to investors.
Owns large percentage in fund. Very stable and conservative business model. Very strong cash flows with low breakeven prices. New projects going well. 20 years of stay flat inventory. Low natural gas prices don't affect company too much. Expecting major share price appreciation. Can sleep easy at night.