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Seven Generations Energy Ltd. class A common shares T.VII

"Seven Generations Energy Ltd is an independent energy company focused on the acquisition, development, and optimization of high-quality, tight rock, natural gas resource plays. The company employs long-reach and horizontal drilling to produce resources of natural gas, condensate, and natural gas liquids. In addition to drilling operations, Seven Generations owns several gathering lines and processing facilities. The company depends on a skilled technical and business team to identify, capture,


TSX:VII - Post by User

Comment by Robertboblawon Jan 14, 2021 11:46pm
134 Views
Post# 32303855

RE:RE:Projected 2021 Numbers

RE:RE:Projected 2021 NumbersHey HP. Let me jump in here. In 2018 when with oil at ~$65 throughout, pou did not generate a single dollar in free cash flow. But their share price was ~$20? How did this valuation make sense then? They had $300 mm in funds flow against ~$500mm in capital spending in 2018. That is not good at all if I can say it blatantly. And it is likely in part at least some of the reason they were not able to sustain their ~$20 per share valuation since then and neither has VII btw. Fast forward to 2021 and most costs have now come down dramatically and oil and gas prices are starting to stabilize, we're likely now in a place where producers will start generating solid free cash flow again and can run up some solid valuations. Way I see it, if VII can use some of that free cash flow to start paying back debt or canceling some shares in the next few years, the skys the limit for them IMO.
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