RE:Kakwa Unhedged - Compelling investment opportunityevidently those are not the right numbers.
arx management is keeping production at kakwa WAY under it's potential. Since their disclosure is woefully limited I have to surmise that it takes a lot of capital to grow production at kakwa, and or the assets aren't as good as they thought. there were also incessent rumors about "inventory" and running room at Kakwa that 7g could never quite shake.
MyHoneyPot wrote: At 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