be careful of chasing the PPS of this to OIL prices.
Don't forget the NG mix which is significant here and that commodity is in the toilet.
Also take a look at the hedges EQU has. They have substantial production at fixed pricing.
This is probably the answer to your question:
You may want to check out the Petroflow Bankruptcy site. The Judge entered an order on March 4th saying EQU has to pay back all the prepetition payments it received from Petroflow for water disposal. After offsets, it comes out with an order requiring EQU to pay Petroflow $10 million plus immediately. No wonder EQU had to raise all that cash recently. Petroflow's bank has also filed a motion to make the $.08 per gallon EQU is entitled to for water disposal permanent and assignable to any buyer or refinancer of Petroflow. I'm really not sure how big a victory EQU has had in the bankruptcy proceeding. I know they've spent a bundle in attorneys fees to Fulbright. For Exxon- these amounts would be chump change. For EQU, with its small revenue and capital base, these are major problems. Stay tuned.
I'm not surprised you showed up after the judges ruling requiring EQU to pay back 10 million. Nor was I surprised you had nothing to say when the Farmout agreement was officially terminated.
That of course was the Plum for EQU and very bad for petroflow. The 10 million is B.S., but EQU won the big one.
I guess you are still hoping your shares of petroflow will make you millions. Good luck with that.
pull up the 5yr chart and you will see what is going on..... the market had left these shares for dead, and clearly they are not;
big re-rating going on now by investors imho on equal shares; also, they have a decent following of analysts in canada who are familiar with equal and it excelent cardium assets;
the cardium in alberta is an area that, imho, will be consolidated by big players very soon, shares of equal will be well north of 10$ by the time that happens so it has a great risk/return at current prices;
also, the shares have traded well since the legal issues hanging over the company were settled.... this is a very good sign as it shows how much a bullish event the victory was for the company;
They just issued an abbreviated operational update. I guess they do not wish to waste too much ink and paper.
Be that as it may, the before tax NPV10 for their year end reserves is shown as $469 million. After deducting the convertible debentures and bank debt, that translates to around $10 per share. Equal is trading at a large discount to that.
In the current interest rate environment, some companies are using discount rates of 5%, not 10 %. So this is a conservative calculation.