GREY:MKRYF - Post by User
Comment by
CONSTRUCTIVE_SUBVERSIONon Mar 10, 2013 5:01pm
317 Views
Post# 21108101
MJH..
MJH.. Good luck to those that want to buy at 16 times cashflow and gas weighted, unless theres a large percentage of distillates in the production mix. People are hot on things because they have a vested interest. Over the long run, fundamentals take precedence, they always do.. Good point though, stay away from the overvalued situations, they can come back to bite sometimes. As far as cashflow multiples, they arent so meaningful to me, ,more interested in comparables, latest M and A valuations through price per flowing barrel. Thats where the rubber hits the road... Companies cant hide on that one... SO take 5000 boes/da... take market cap add debt subtract cash divide by barrels of production... Much better way to value a company in my book although one could use debt adjusted cash flow I guess. IN any event...