Kakwa Unhedged - Compelling investment opportunityAt the current prices, 69 WTI Condensate, 4.20 Aeco gas, 21 dollars NGL
Kakwa CF per Boe is around 45.88 and its netbacks
(royalities 2.23, Op = 3.52, Trans/processing = 7.58)
including Royalities, OP Costs, Trans/Process= 32.55 FFO per boe or net back.
At 180,000 boe that means FFO = 533,133,720 quater or 2 .1 billion a year FFO
This is the current Kakwa budget 525 million.
(2.91 million to support 1000 boe of production that will return about 11.666 million FFO)
At 220,000 boe a day FFO = 651,607,888 quater or 2.6 billion a year FFO
I would like to see the economics at scale, like over 100,000 boe of ARC other production and see how it compares with kakwa.
IMHO