Hi Quiono,You say that LNG prices have fallen less than oil,...

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jdawg

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22/04/20

05:35

Post #: 44177455
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Originally posted by Quiono: ↑

I am sure you have a motive other than protecting the Oil Search investor base, but here goes:
1. This situation is temporary
2. Many jurisdictions are already planning to re open their economies in the very near future
3. Major Cap raise just took place
4. Interest rates are as low as they can go, and if OSH wanted to borrow more money, they probably could
5. Current market volatility and the risk it demonstrates is likely to bring the PNG Govt back to the negotiating table with a less combative attitude
6. Saudi and Russia now realise that they are shooting each others feet
7. Quality expansion and diversification options in Canada for OSH
8. OSH has a product mix heavily skewed to LNG which (according to the quarterly) only fell 4% in price Vs Oil's 20% drop
9. LNG is primarily used in power generation which is still required when people are at home. Perhaps not as much, but it isnt Petrol or Aviation fuel which will take longer to recover.
10. This situation is Temporary

There will certainly be volatility, and I think there may even be better entry points than ~$2.50 (maybe), but imo there is unlikely to be too many opportunities to enter a long term (predominantly) LNG player with the kind of growth profile OSH has at metrics that are this cheap for a long time.
In Short dwuuuu, I think you couldnt be more wrong

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Hi Quiono,

You say that LNG prices have fallen less than oil, where did you get that from?

OSH Price at posting: $2.50 Sentiment: Hold Disclosure: Not Held
2 Upvote

0 Great analysis

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