/biz/ - Business & Finance

>>20068198
CPE is a slightly better buy over OAS, while OAS offers a higher ROI it is a riskier purchase.

>>20068221
This is incorrect. Crude Oil will certainly hit $100 per barrel, and it might even peak at over $150. The fact is that oil consumption is going up YoY globally, while oil extraction is slowing down and few corporations are investing in discovering new deposits.

The second fact is, oil extraction companies are making money hand over fist, and many US extractors (like CPE and OXY) can easily break even at $30/brl. The only reason their balance sheets may appear bad is because they over leveraged themselves and reinvest most of their money asap. Also some companies (like KOS) pay their directors exorbitant bonuses which effects the bottom line.
Likewide, most oil companies have extremely good gross margins (most averaging at 80%+) while tesla has a gross margin of only 20% iirc. The point is oil has bottomed out a few weeks ago and can only go up from here.