Post by
MyHoneyPot on Nov 10, 2023 3:31pm
For Sale - 16 dollars is a steal....
Nuvista's 2024 business plan, they will grow production 13% between 2023 - 2024.
Even with the substantial growth they will generate about 400 million dollars of which 3/4 will go to share buybacks and the other 100 million to orphan wells and other corporate stuff.
300 million in share buybacks when the market cap of the company is 2.7 billion is a tremondous reduction in the share count.
So based on the buybacks and the growth in production you would expect share appreciation in the 25% range baked into the stock.
So to find a buyer all you need is someone that believes your story, and if they offered Nuvista 16 dollars a share, take $1.50 off in cash you will not be spending in buybacks. Then take off the increase value in the next year you would get due to production increase.
Essentially, a 3 dollar share premium would be paid back to the purchaser in the first year.
All these share buybacks do is help in the financing of the purchase of your company.
Nuvista is going to be taken out that is my guess, they are generating to much cash and are two cheap.
Get ready for a round of industry consolidation.
IMHO