GREY:CEQXF - Post by User
Post by
exprohibition18on Nov 06, 2017 2:30pm
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Post# 26913220
quiet= no one paying attention yet
quiet= no one paying attention yetthe metrics are silly cheap i 100% agree. whether ffo comes in at 0.08 or 0.10 is irrelevant imo
they trade at 1-1.5X cf. versus most peers trade5-8X. the bigger question is can they roll over 60MM in debt in the next year?
I have done reserve lending math a dozen different ways . Dont think it should not be an existential issue to rollover 60MM in debt on these assets with now recovered aeco and with condensate/ dunvegan offtake but market is treating this like it is indeed an existential crisis.
but we'll see what comes back. If CPP says no, there are other options and to the extent that prices stay strong the options grow considerably.
If they can rollover debt by sept next year (still a long runway) and even increase avail credit - they can start drilling dunvegan wells again and really turn the ship around.
. they have been cornered by low prices , thats about all imho.
great and desirable assets imho.
cheers