Take a look at the gearing ratio on the balance sheet, it's around 18%. A lot of oil and gas companies sit within the 20-40% range so WDS isn't as leveraged as what you probably think.
Then there's the Stonepeak deal which reduces forward commitments for WDS. Plenty of operational cashflow to service the debt, and something like 30 MMboe of 2025 oil production hedged at $78.7 per barrel, so some downside protection in place.
More of a hard rock investor myself, but if this falls to within $16-18 band it will be a strong buy imo.
WDS Price at posting:
$19.43 Sentiment: None Disclosure: Not Held
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