Post by
Deadcow on Aug 05, 2014 5:42pm
PT $1.35
Management confirms year end production rate of 6500-7000 boepd and the also confirm this years EBITDA of 105-125 mill. Now management predicts an increase in next years production & EBITDA. By 40% & 50 % getting the company @ roughly 10,000 boepd and an EBITDA of approx 160-170 mill. Now by achieving these numbers, LNREF will be a much bigger company with more coverage and can easily trade at a discounted rate of 7 times 2015 EBITDA which takes the company to approx $1.2 billion, minus debt leaves the company at approx $980 mill which is approx $1.32 per share. Keep in mind the company plans on funding next years growth through internal cash flow and will not add on extra debt. Of course they will use their revolving credit line to aquire new acreage if any opportunity comes by like the 5200 acres they just acquired. But any additional acreage would be met with additional upside too.
So basically LNREF is a very good solid long term growth story where you can return 150% from these levels in the 12 - 18 months IMO.
Cheers
Comment by
MDICKIRS on Aug 25, 2014 4:36pm
Jerry, where did you get the information that the wells were being interferred with? I was under the impression the pull back was due to the Board of director quiting and selling his 40 million shares. It is very hard to get any news on Lonestar. No message boards on Yahoo or IV.
Comment by
Deadcow on Aug 26, 2014 8:20pm
Hi Jerrybe, it would be great if you can mention where you got that info from. And if you can eloborate a bit on the current situation, did they finish all the maintenance & clean up work or not ? Cheers Deadcow