My best guess is that once we hit about 15,000 bbl/d it will stay fairly constant. A $10 WTI Change over an entire quarter will change the estimate by about 1 cent. A 1000 bbl/d swing will change a quarter by about 1 cent.
Good info, thanks. Considering your track record, this is very reassuring to read.
I may have been over-optimistic using 6 in the current economic climate, but it can't hurt to dream. Four as a floor? Eight to nine might have worked in the past for some companies, but is probably pushing it. Even so, I'll gladly live with a lower multiple if the company can come through on deliverables.
Now let's just hope that Obama and the rest of the gang can keep the economy artificially propped up for as long as it takes to hit that guess on the December SP, so I can cash out half and have a clear conscience on the years spent here. The rest of my shares will definitely be long term keepers.