RE:i just don't get the value proposiitonI don't know the peer you are talking about but I for one would diversify out of TOU to take my money into two of its peers.
The peers I'd move to are ARX and AAV.
ARX is shutting in many more liquid production than TOU was able to do and is increasing dry gas production. Clearly the place to be over the next 18 months.
AAV is doing the same in an even bigger scale. TOU said IF liquid prices remain low, they will consider doing this.
Seems to me the smaller peers are more nimble and are able to adapt more quickly. And both have good balance sheets (as does TOU).
JusticePrudeau wrote: of investing in one of TOU's far smaller less relevant close peers?
I'm sorry. I just don't.
by exit 2020, TOU will be producing about 4X what the peer is producing TODAY.
TOU has a $1b asset "hidden" in plain sight
TOU has 2.2m acres in the WCSB, about 5x more land than the peer
TOU yields OVER 2x as much as the peer
TOU already DECLARED dividends for all of 2020
TOU sells for only 3.5x the peer despite having almost 4x the production
TOU has 165k pristine acre asset in NE BC that is just waiting to be drilled
yet on a flowing barrely basis the PEER is MORE expensive
The peer is producing resource at the same rate it did SIX years ago
strange things can and will happen in Capital markets.
you're seeing one here.