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Re: Biden Plan to End Fossil Fuel Subsidies Faces Big ChallengesGuys. Let's not use hyperbole. The difference between immediate expensing and unit expensing is nominal. I just ran a sensitivity for the extreme case using somewhat extreme splits. The impact on AT operating cashflow was <5%. This is the equivalent of increasing breakeven by $2/bo. Of note, this also completely disregards the fact that just about every company has massive NOLs. The true impact of this change is ~ nil. If this is what it takes to rid ourselves of "O&G collects massive subsidies".... I'd view that as a win. Sensitivity: - Shale decline profile (30% first year volumes) - $35 netback, $8MM capex - 30% corporate tax rate - Immediate expensing of all capex vs. unit depreciation across the full life of the well |
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Msg # | Subject | Author | Recs | Date Posted |
299359 | Re: Biden Plan to End Fossil Fuel Subsidies Faces Big Challenges | mktownson | 20 | 12/2/2020 4:02:31 PM |
299361 | Re: Biden Plan to End Fossil Fuel Subsidies Faces Big Challenges | brookpe | 19 | 12/2/2020 4:14:35 PM |