RE:Nuttall on CPG Aug 2015What I am taking away from this piece is that CPG was trading at 5.5x CF in 2015 at WTI of $38. Before 2015, CPG trading at a multiple as high as 8-9x CF.
Today, with WTI priced at $70+, CPG is trading at 2.0x CF (as per RBC's recent report). If CPG were to return to 5.5x CF, the stock price for CPG would be C$15.50. I am not suggesting the CPG will return to a 5.5x CF multiple, but it shoud return to a 4-4.5x CF multiple. At $70 WTI, a 4x CF muliple would make CPG about a C$10 stock.
Once shareholder returns are executed -- whether by raising dividends or expercising the current NCIB, CPG should move up meaningfully.