Originally posted by Ya
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They've hedged their oil 3-ways. 6.18 mmbbls for 2020. Long put price (bottom line) is USD 54/bbl to the Brent price. When Brent drops below that price, as is the case at USD26, STO gets 54/bbl. USD <40/bbl includes their CSG project. Ningaloo Vision at Coniston will b offline till late 2021, with some infill drilling planned. So expect cut-backs to 2020 Capex to navigate thro' these times. They did this to their staff/contractors back in '98 when Oil got into single digits & Cooper Basin ground to a halt with just 1 rig (ODE-32). Revenue then was AUD770m compared to the USD4033mil last year so a slightly different ball game. So during tough times, betcha some bright spark in-house will still come out on top at the end of the year with 'met/ exceeded their KPI"s'.
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Ya perfectly summed up as usual, I totally agree with your summary. I have included a couple of good cashed up oilers in last couple of weeks and will accumulate more during a few more troughs still to come imo. STO is a fantastic buy below $3. Enjoy the bounce back all in good time, it will happen. What's critical to me is Management seem to be proactive and on the ball. Not out of the woods just yet guys, great opportunities are well and truly here. Take care, stay safe and good luck to all holders.
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