SEA 0.00% 16.5¢ sundance energy australia limited

exactly in the low $80 "Some start shutting" which wont fix the...

  1. 2,614 Posts.
    exactly in the low $80 "Some start shutting" which wont fix the WTI but will fix the local supply at US refineries...  Dont forget we are 80% hedged so any major wTI drop has to be sustained to hurt too much..

    I take your point some things are bigger... but some are temporary and with Syria Self destructing by the minute, the Kurds about to start a civil war in Turkey due to Turkey's stance, Iraq under more pressure from IS and Iran in deep "sh  " over its innaction and uncooperative stance on nuclear talks... its not exactly a rosy forecast for POO...  We also have winter demand about to reduce inventories...

    If SEA where half its size with much lower margins and a poor balance sheet with high debt, i would be worried. But with a nice balance sheet, good margins, 18 months hedging in place , possibly more .. they may actually benefit nicely from this..  It should also halt any TO which will be a good thing..

    We have seen an over reaction to the downside before and yes it can hamper sp... dont forget that previous dip was on the back of a gfc induced global recesion which is quiet different to todays downward pressure...

 
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