Long end of the Brent futures curve needs to be ~70+ for this to work. Buybacks were paused because of slowing contracting activity / weaker market environment. Cash flows have been pushed out.
Thanks for the note, I can't help but notice that post recent sell-off the shares offer a similar payoff / torque without the time decay, CoC risk, etc... Throughts?
What has to go wrong here for you to lose money? Also, why do you think they paused buybacks during the last quarter?
Long end of the Brent futures curve needs to be ~70+ for this to work. Buybacks were paused because of slowing contracting activity / weaker market environment. Cash flows have been pushed out.
Thanks for the note, I can't help but notice that post recent sell-off the shares offer a similar payoff / torque without the time decay, CoC risk, etc... Throughts?
Agreed. If i was building a position today I would just buy the shares.