Block out the noise....Focus on FACTS!So our dear dubious & questionable friend, StrathCona, has finally released their FIRST ER as a publicly traded entity. And as expected, the results came in as one would expect. These results are much better than even i expected and please note, they DO NOT include the Pipestone acquisition or it's assets. After digesting these financial results, i'm getting the same feeling, the same vibe i did when i looked at HammerHead's initial reporting, when they released their first ER. What is that feeling you ask? That these foks are pulling in a great amount of cash, just like HH did. And these numbers show that without a doubt!
By my estimations, if we take into account ALL the direct cash costs the company incurrs to run the operation, these guys are pulling in a minimum of $250M cdn in profit per qtr! And this is the same "gut feeling" i had when i took a look at HH numbers the first time too. A very profitable, efficient operation. So i'll just go right ahead and say it that these guys are way way undervalued at $25 cdn. .....based on these numbers. And for those of you like me who were worried that they overestimated or overexaggerated or even fudged their production numbers, well my freinds, your worries (and mines!) are put to rest here with these figures. They came in as they said they would come in at.
I'll even go right ahead and predict that for the next qtr, with the inclusion of Pipe's assets, they will be around 200K in terms of prodcution. Which puts them at the same level as Crescent Point when they consumate their acquisition of HammerHead. Actually i put Strath ahead of CPG because they;ll have more crude output and less debt than CPG/HH. And taking about their debt levels, they came in BETTER than i expected. I expected about $3B with decomm liabilities, but the actual number is ~$2,5B because they managed to even reduce their debt during that time. So it's just another confirmation of how much money or FCF they're takin in, that they are able to do this.
Finaly word? If i didn't know any better, i would say these guys are following the same playbook or path as HammerHead did. Probably setting thmeselves up for amn exit strategy & potential sale in 2024 or early 2025. And THAT would NOT surprise me one bit....at this point, cosindering some of the "questionable" decisions that were made thoughout this whole process. And you know what? My intial thought/worry of Pipestone being taken our cheap by Canadian UnNatutral might actually end up being true in the end.......Because if StrathC continues to trade at these insanely low levels, someone like CNQ, a real bottom feeder vulture who looks for those decimated vlauations & appetizing low deals.....will be looking at SCR very closely......if they arent already.
Another point before i end this.......if you're smart, you will quickly disregard & dismiss any foolish comments made by someone like Ztransformers, aptly named after those wonderfully scripted pop corn B movies. His commentary is as valuable as the two minutes it took to write a story for those said movies. So yes youll get your 2 cents worht if you do listen to him lol. This is the same guy who thinks Athabasca Salsa Sauce is cheap & better than sliced bread, and that Suncor is a STEAL at these levels or the buy of the century........S when he says something reslly negative about SCR.........with no leg to stand on......you just gotta wonder where he's going with this or what's his MO.......
My guess? Poor Zeek is peeved at MrMoMo for dumping on both of those "queationable" invesmtents of his and he comes here spewing nonsense to vent.......
So be VERY careful who's comments you read and listen to.........
GLTA