RE:RE:CPG - Top of the Nut's Twitter Again@Eigen337: In my opinion, Nuttall is indicating that CPG is the number one most undervalued stock of the three. Your reading looks at the EV/CF multiple discretely (that is, in isolation of other factors). There are two relevant factors that need to be considered.
First, CPG has depreciated more since the start of this year in terms of trading multiple than ERF or TVE. CPG has gone down 24%, ERF has gone down 11%, and TVE has gone down less than 3%.
Second, with a few exceptions, the larger the company in this sector, the higher the multiple it will trade at (CNQ and SU trade at among the highest trading multiples). Nuttall has consistently indicated that he applies a normalized EV/CF multiple of 4x to 6x for this sector (he assumes a 6x multiple for a large cap company like CNQ, 5x multiple for a midcap company like WCP, and a 4x muliple for a junior cap company like TVE). Given CPG produced 3 times the number of boe/d as TVE (even after TVE's recent acquisitions), we can see that CPG is likely remains more undervalued than TVE.
Eigen337 wrote: NOT the TOP !!!
CPG is # 2 !!! (2.8X)
TVE is # 1 !!! (2.4X)
ERF is # 3 !!! (3.2X)
@ 6/11/2021:
BASED on 2022 EV/CF @ WTI @ USD 70/bbl. !!!
This is my opinion only.
Eigen337