RE:RE:RE:RE:RE:Why USD$60 WTI No Longer Matters for CPG Jwalling I think you have the facts in yellow wrong. At $50 WTI, projected cash flow is $150 million. At current strip prices as of March 7 (date of press release - around $56.50), projected cash flow was $400 million. There is no incremental $360 million, only incremental is adding $40 million for each increase in average WTI price.
jwallingf wrote: Bonjovi501: CPG's debt is reasonable at debt/equity of .64, the same as CNQ. Net income has been negative for the last 4 years but EBITDA totals C$9.8 billion over the last 5 years, C$1.9 billion for 2018 alone. Cash flow over the last 5 years was C$9.4 billion. They've announced a debt reduction target of C$1 billion by the end of 2019. Projected free cash flow of at least $400 million for 2019, exclusive of asset sales. This projection based on $50 WTI with each $1 adding C$40 million to cash flow. At today's $59 WTI that translates into an additional C$360 million. The NCIB should support the stock price and that price should increase as management executes its revised strategy. Investors are waiting for more concrete results before being convinced that CPG is truly on a new path.
With oil helping out, an entry here should produce decent results with the downside maybe C$3.80. I could be wrong, of course, but I thought I was wrong once, but I was mistaken.