RE: RE: RE: upping price target to $7.4+ Scul, both the Hunton/Miss. and the Canadian assets have a scope for a much higher valuation, the issue is Equal needs to divest one to pay debt and achieve a full valuation for the other remaining asset, if we continue holding both assets at the current model, Equal will be stuck where it is today, a company with valuable assets but a depressed market valuation. A trust dividend model would bring the Hunton/Miss. full value, or a Canadian light oil growth model will bring the Canadian assets full value, we can have one of those models, but not both.
I am fine for selling the Hunton or the Canadian assets for a slight discount in order to allow for the other assets to be fully valued, debt to be reduced or fully eliminated and for the company to have ample financial resources (after either divesture) in order to fully drill and develop the remaining asset.
It is also important to prepare for a bad scenario, paying the debt would strengthen the company and better position it to withstand any adverse shocks from Europe or unexpected developments in the energy markets, shareholders will be well served to have a leaner financially strong company as a vehicle to develop the Canadian or the US assets.
Regards,
Nawar