Very hypothetically the model spits out an implied share price of between $2.04 - $2.20 (NYSE) if I change the average price in 2016 to WTI $50 AND LEAVE EVERYTHING ELSE UNCHANGED.
I mean never say never, but the probability of WTI shooting (pun) up to $50 from $30 in 3 months is rather small. Its a 66% gain and would need to be higher than $50 to be able to avg $50 for 2016.
To SSN, just as important as the oil price is the capital intensity/efficiency assumptions made over the next 2 years. They absolutely must pull that off within some margin of error on the estimates. I'll be watching that closely ... how is their production stacking up versus the D&C capital spent. This seems to be the exercise going on with quite a number of companies.
Wont be too long until results are known.
SSN Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
