SEA 0.00% 16.5¢ sundance energy australia limited

I haven't done the legwork to know for sure, but breakeven in...

  1. 182 Posts.
    I haven't done the legwork to know for sure, but breakeven in Eagle Ford should be in the low to mid $70s range (for AXAS, another Eagle Ford operator, it's around $73, and that may factor in their more costly Bakken acreage, too); breakeven in the Mississippian is more like in the $50s I think

    In any event Sundance has plenty of hedges in place (198K bbls oil for 2H 2014 at $95-101 and 216K barrels for 2015 as of the last quarterly, and no doubt more struck since then), so I think the shale oil doom and gloom is way overblown in our case. Even if prices go uneconomic until 2016 (highly unlikely), Sundance has an exemplary balance sheet and savvy management that will allow it to take great advantage of the relative weakness of its peers and strengthen its own already strong position by buying up their acres on the cheap while spending minimally to maintain its own.
 
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