Painted Pony Pete Ltd PDPYF

Energy

"Painted Pony Energy Ltd Petroleum explores, develops, and produces petroleum and natural gas. The company focuses on the development of natural gas and natural gas liquids. The company's operations take place near the Montney formation in Northeast British Columbia. The Montney location is a sweet natural gas-saturated zone (natural gas that does not contain hydrogen sulfide or significant quantities of carbon dioxide) with no associated or underlying water. The company also has multiple gas pr

OTCPK:PDPYF - Post by User

Painted Pony Pete Ltd

Bullboard Posts

Comment by bigbabon Aug 19, 2014 3:28pm

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Post# 22857092

RE:RE:RE:NG Prices

DEE trades at 1.25x NAV (that would equal ppy at $22.75)

a smaller co , with much larger % of debt , and less potential .....

many other natgas co's trade higher than 1x

shambano1 wrote: I don't want to burst your bubble but NAV goes down with falling NG prices and not many companies trade at 1 times NAV.

so the question to ask is what is the appropiate discount to NAV that PPY should trade at?

50%, 40% 30%???

I'm really not sure but in a falling commodity environment, I don't see NAV going up.

I haven't read all the details but on the surfacve the deal sounds good, but PPY still must pay to process their NG and that will lwoer netbacks and again in a falling commodity environment, processing costs and soon to be debt service costs will also lower netbacks.

I'm still bullish on PMT through my jan 12 and 11 puts contracts, so if PPY keeps going higher I will win also but be careful because these are cyclical stocks and they go down when NG prices go down.

DYODD