6.5 Times FCF - $10 dollars a shareI want VII generations to do great, because all other energy stocks will follow and with the huge share float, and large enterprize value they are more investable from a funds perspective.
VII generations at 10 dollars (6.5X), 180,000 boe they will have an enterprise value of 18.5 million per flowing boe. That would be roughly twice the value that POU is currently trading at on an enterprise value per boe and POU has a suite load of assets that VII Gen just does not have.
VII generations plan has lost its sizzle for me, 60 wells a year, 500 million in FCF, good luck. Its a good retirement home for the employees of VII generations, but with 334 million shares out there and now 2.2 billion in debt, i don't see much hope here.
Maybe with their asset base they could spin off a more gassy company, and raise some capital that way, get rid of the extra gas plant, and try to avoid lining managements pockets any more. I just do not see managements alignment with creating share holder value. I thought i did at one time, but not any more.
Sorry.
IMHO