Even after wipeout of Canadian E&P's, PWE/PWT still conservatively worth C$2.92/share based on comp | OBE Message Board Posts


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Msg  13629 of 21771  at  8/25/2015 5:55:49 PM  by

kyrosl


 In response to msg 13619 by  batman10023
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Re: Even after wipeout of Canadian E&P's, PWE/PWT still conservatively worth C$2.92/share based on comps

the ceo is a gambler and he lost
 From all the CCs I have listened to, it seems to me the CEO is not that much of a gambler, but rather he had the illusion that he was running a big diversified oil company .  I can understand where the illusion is coming from: his background is from a big oil company, and  PWE has all  these millions of acres of resources -- alas, resources that only have value if oil sells above $70, perhaps well above.
 
This may explain the lack of hedging.  "we are price takers" he said with pride in the Q4 CC.  This is what the Exxon CEO is fond of saying ...
 
And then we hear about all this cost cutting and how costs are the best in this area or that area.  But none of this is reflected in the cash flow, and cap ex remains disturbingly huge for apparently not much (if any) gain in output. 
 
In another conference he talked about how he is trying to educate the employees so that they think in terms of profits  -- as opposed to just getting a paycheck, I guess.  This was right around the first low in oil prices. That's how Exxon would attempt to adapt their workforce to  new much worse conditions: there's plenty of time, so no need for unpleasant urgency; after all, the balance sheet is rock solid, and we are naturally hedged.
 
I have replaced my PWE with Jan 16 options, so it's a much smaller % of the portfolio and is now truly an option on oil price over the next few months.  If oil does not move meaningfully higher by December or so, my options go to zero, and. IMO, so does PWE.
 


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Replies
Msg # Subject Author Recs Date Posted
13632 Re: Even after wipeout of Canadian E&P's, PWE/PWT still conservatively worth C$2.92/share based on comps carler98 0 8/25/2015 6:05:23 PM
13644 Re: Even after wipeout of Canadian E&P's, PWE/PWT still conservatively worth C$2.92/share based on comps Nawaralsaadi 8 8/25/2015 7:53:24 PM




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