seems like that would value the remaining 96 MMboe at 2,849 million less all liabilities of 1,110 (after sale) for a market cap of about 1.7 billion vs current market cap of 874 million. Admittedly very simplistic view but come on how is this thing not $30 at least?
This stock has been manipulated by the shorts and they keep pointing to DEBT and a viable CAPX funding plan. Maybe with todays sale of Nort Sea Assets and their current available Loan revolver and projected 2013 free cash flow we get a confidant FY13 CAPX operating plan.
Its all about the Eagle Ford Every Valuation METRIC is about the Eagle Ford.
Oil Production is about the Eagle Ford
Proven reserves are about the Eagle Ford
CAPX Plan is about the Eagle Ford
Included in that $184million they gave up a $111 million dollar tax loss which will be recovered within one year's of cash flow and 100% of an adjacent lease. Honestly, I think INA got the better deal provided the production curve behaves.
agreed it confuses earnings estimates range from 4.51 to 1.05 so apparently the analysts can't figure out how much production they will get with what they have left next year + all the JV activity
The good part for the company is that is really clears up the balance sheet for them, I assume a secondary offering is off the table.
Wells Fargo say that the sale is a good thing. Reiterates buy rating. I believe that UK taxes on North Sea oil are way up there. I would like to see someone explain what this deal equals to based on tax rates. I think they made more money than people give them credit for at the moment.
Sentiment: Strong Buy
The sale keeps the Bear case alive and pointed.
CRZO does not have the funding to develop its resource plays, thus the Eagle Ford.
So EPS for 2013 ......... ?????????????
Eagle Ford down well spacing going to be an important factor as its going to be a big factor in increasing proven reserves thus share price to a buyer.
I'am a Buyer under $20 to me its a no brainer investment