Veren Inc T.VRN

RE:RE:Duvernay Wells moves CPG to a new Evaluation

[Anschutz]

It's simple... after 6 years of utter pain while management carried on with their lavish lifestyle...

CashHungry wrote: It is hard to over emphasize how transformative and brilliant the Duvernay acquisition was for CPG.  Back in February the acquisition looked great, now eight months later it looks head-shakingly fantastic.  I am not sure how the management haters on this board can reconcile their negative views in light of this deal.

Here's a recap:

1. They paid 900 million for assets that were already producing 30K BOE of high netback light oil.
2. The acquistion was immediately accretive with infrastructure already in place
3. Despite paying $700 in cash significantly lowered debt/CF
4. The entire cash portion of the acquisition will be paid off by YE '21
5. Long life asset with only a small fraction booked as 2P reserves
6. In '22 will increase production to 37K
7. Since acquisition reduced well costs by 15% offsetting inflationary increases across portfolio
8. More good news to come when IP30 results come in early '22.

Conservatively I would say the KD play is now worth over $2 Billion, which is over half of CPG's current market cap.  That is incredible wealth creation in less than a year and management has my sincere appreciation.

MyHoneyPot wrote:
These wells and well pads they are drilling in the Duvernay, are going to knock the socks off investors. Shell has been working this play for years, and the Duvernay needs companies like CPG to come in an exploit the play.

All the majors previously in there are just to inefficient and CPG, is going to get a lot of excitement and awareness regarding the duverny.

When the results come out in 2022, they will be fantastic.

IMHO