RE:under $5 is a deal here, worth $8Andy needs to add color to the Entropy story. An IPO would be nice!
WCWiteration3 wrote: the production is gonna be fairly flat to up 10%. they are drilling less than a dozen wells now thru YE. if the wells outperform AAV might see less than 10% production growth, otherwise it looks like they are only up a few percent. The big mover is pricing, AAV with their low, low costs will see that price pop flow right to the bottom line. Taking into thought the 40%-50% hedge book, it looks like aav this qtr will see an additional 50 cents per boe with little increase in costs to produce, only royalties of 5% and the trans costs..This is a cash cow.
Entropy, the wild card, it certainly has significant value. the result of enormous brain power over the decade as AAV worked on carbon capture at Glacier while other companies did not. they have brilliant scientists and engineering power in the company at board level Had to be worth $100 mill, they have already several companies as clients and we see the other companies like tou and arx deciding it is something they need... it is indeed and buying AAV would be their answer, so the price went well above that $100 mill of brain power.. it might have doubled. this now makes the ownership of Entropy worth maybe up to half the value of AAV as a e&p. That folks is HIDDEN value I long thought, a year ago I guess, AAV was worth $5 as it traded below $2... an ezy double.. indeed.. I am now suggesting AAV is worth more than the $5 as natgas prices zoom and carbon capture is the rage..
my value here is .... AAV is worth $8
I am a shareholder, been one since $1.70 and been in and been out... in now for sure. owner in a big way of KEL and AAV.