BTE - Stock Price

[smjjpres]

Dan,

BTE has been hit pretty hard of late...I have looked over the fins and your analysis and do not see anything troubling. FFO basically covers the distribution and reduced capex at $50 oil, plus the company has $1B of liquidity...any hidden risks that you see?

Is this another BCEI market over reaction case? Does WST not like the Canadian issues?

Thanks Dan, Steve

[dan_s]

I am in Denver at the Enercom conference. BTE presents tomorrow morning, so I will attend and give you a report.
BTE has some of the best Eagle Ford acreage and that is what they will focus on. In Karnes county the wells are so good they generate decent returns even at $30 oil. Wall street does not like their Canadian heavy oil which sells at a discount.
They do have a strong balance sheet and should survive a long period of depressed oil prices.
Take a look at row 46 of my forecast and you can see that cash flows from operations cover almost the entire cap ex budget.
Check back tomorrow night for my thoughts on their presentation.

[dan_s]

Nothing I heard at Enercom changes my valuation.