your saying the market doesn't believe their G&A, transportation and operating cost numbers? that makes no sense
Debt is down to less than 600M...and will be down to 400M soon in Canadian dollars..that's less than 300M US...that's nothing!
Basically the whole enterprise value of the company is now equity...what the heck is the market thinking or are they thinking at all? They have three million acres plus..They already told us the forward funds flow is over 150M at 50 WTI in their last presentation..that's higher than all peers doing higher volumes right now..
all these companies are now trading at 15 to 25x funds flow right now...PWE which has no default risk is trading at 5x funds flow?
If you look at the two recent PWE presentations together, you can conclude that capital investment of 150MM will create about 175M in funds flow from operations at WTI 50....
while all others is are $2.2B plus...as if the debt hasn't been wiped off the map...
Currently making 150M funds flow as it stands right now..one of the best low debt low cost producers in Canada..and as nat gas continues to increase in price, they will be able to sell 20k BOE of high decline rate low margin assets at the high end of guidance
465M debt and 520M equity..Evidently, they closed the deal for the remaining115M and haven't announced it..
I'm laughing and buying as much as I can...keep it down here longer boys...Don't let it break 1.50 LOL
1. You don't know what the book value is
2. E&P with extremely low debt trade 3x book..this is not the old PWE anymore
Rosie only if you don't follow Mike Rothman..He ws pre citing 85 when WTI was 30 due to his proprietary inventory and demand models. He has contended that demand forecasts don't properly factor in emerging markets where world oil growth actually is besides China and India, and that there are 600M missing barrels out there...Supposedly, the market was out of balance by 2M +barrels day last year but world inventories only went up 200M...now he says we a rein supply/ demand deficit going forward and it will accelerate from here
So ...PWE share price will increase to market parity with other higher risk mid cap E&Ps when the street sees the numbers of what PWE is actually making at 50 WTI (this is Penn West's view-not mine). There is no other EP with the exception of Whitecap that is making over 150M per year at 50WTI without the benefit of hedging.... and then it will go up from there with the others as well as oil recovers...very very strong buy as PWE shares finishes up consolidating and shorts cover..easily 5 by year end....at 85WTI and 500M+ in funds flow and literally 0 debt, could see 7-8 bucks
"Michael Rothman, whom many consider to be the best energy analyst on Wall Street, predicts oil prices will surge above $85 a barrel by the end of the year. His comments came during an in-depth strategy session exclusive for CNBC PRO subscribers.
Rothman is president of Cornerstone Analytics, a research firm where he advises governments, the Saudi royal family, and a range of domestic and international institutional clients including Boone Pickens. Previously, Rothman was head of energy strategy at ISI and Merrill Lynch."
What they are trying to close is only about 3300 BOE per day for $100M..bringing debt down to 600M...its nothin..and I think if Nat gas stays up here, they are going to keep the 20K BOE equivalent...
(and I know you peak at these boards..you don't have to admit it)
WCP $3.4 B
Are looking funding managers????
They will not be able to flood the US market or the European market with imports going forward..
N Dakota production dropping like a rock through the summer..US oil production continues to drop.
Nat gas prices now up to 2.81 and climbing making PWE CURRENT assets immensely more valuable..
I will continue to repeat that there is little difference right now between PWE and Whitecap Petroleum from a funds flow, debt, and production standpoint..White Cap operating costs are still less but that minimizes as nat gas rises
PWE has 200M less debt and more room to develop going forward...yet post sale, its still less than 1/3 THE PRICE .....lets see what happens as Brexit fears alleviate.
Only the market cap
best case scenario here was the down draft in oil due to currency turmoil..forces managers to re-look at their portfolios and de-risk the asset class
I get the markets, but how long can they keep the enterprise value here at 1.05B US post close on Friday, with 50k BOE before any additional sales and less debt than Whitecap by 200M and no risk of default unlike almost all others
The Alberta Energy Regulator (AER) is prepared to consider licence transfers on a case-by-case basis if companies can demonstrate they can effectively manage the acquisitions without increasing the liability to Albertans, says a spokesperson for the regulator.