Buyer under $7Am buying back shares today. Would like to see the stock touch $6.90 or even spike down to $6.85.
With the 13,000 boepd anticipated in November, a 14,000 boepd 2014 exit, the $Cdn cratering under $US 0.90, WTI not wanting to go below $97, shrinking Edtn sweet/WTI differential, and AECO gas strong above $Cdn 4.00/MCF - I am now seeing close to $190M in 2014 cashflow. But of course, do your own due diligence using your own calculations.
Now of course the macro environment needs to hold up for this to come true, but that is $1.60/share for 2014 ($Cdn 190M/119m shares). Put a 5x handle on this, and voila, it is worth $8/share just on this metric. Just imagine what the CF will be in 2015 at an average 14,000 or 15,000 boepd and an exit of hmmmm, 17000 - 18000 boepd? The only limiter I see is how much of the new 40,000 bpd Pembina pipe that RMP subscribed to and secured.
Yes you sellers, you just keep selling - more than likely just buy back your shares at $6.xx? Perhaps WTI will dump to $90 for a week over the summer to justify the move, but I will keep nibbling back with you :)
L6