BPT share price will fall but I don't think it will fall below 10 cents. Just like oil price cannot fall below $15. At $15, Canadian heavy crude will be priced at near $1 or even less. Right now, Sundance Energy US shale oil production realised oil price without hedging is $2 to $3 discount to WTI. Take out another $12 of direct cost per barrel. So at $15 WTI, SEA basically have no gross margin to pay for the drilling, fraccing and infrastructure expense. There is a price that oil producers will throw in the towel and supply starts to drop.
Me, I am resigned to the reality that I can use my BPT shares as a tax loss/deduction at 45 cents to the dollar. But eventually, oil price will turn and hopefully some sanity prevails in the oil market where a fair price can be realised.
BPT Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
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