The total exposure of their revenue to oil prices involves 43 kboopd total of heavy from Canada plus light from the USA.

 

The heavy oil from Canada prices off WTI at a small discount.  It is also subject to a widely varying WCS discount that has to do with pipeline transport from Hardisty in Canada to the Gulf Coast which they handle with separate hedges and rail transport.

 

So the correct way to think about BTE hedges in 2018 is that they have hedged just under 50% of their production or 20/43.

 

 

If you lose patience with the investment in BTE and sell I understand...but think about this - if you are confused with BTE hedges and know accounting and worked in the industry imagine the other 99%...the vast majority have no idea about hedges falling off.

 

I personally am thinking of switching some BTE over to CPG on Monday not because it is fundamentally better but it seems to me from market action the last couple of weeks that something fundamental may have changed in the perception the market has with CPG.

 

This quarter for CPG will likely be miserable with one off expenses for restructuring and reducing headcount by 15%.

 

But the shift to selling off assets towards significantly lower debt levels may be something institutional investors prefer.  On the other hand I could be imagining this and CPG gets slammed back to previous lows below USD 5,50 soon...