RE:RE:Nuttall on CPG Aug 2015For right now the market is still kind of wary of oil and gas. And I think many people are still a bit confused as to how many decades energy transition will actually take. If you listen to politicians and activists, it sounds like it happened yesterday instead of after 2050.
We're just at the very beginning of a multi-year bull run. What does CPG look like after multiple quarters of green and fewer shares on the market? I'm curious enough to wait until a least the end of this year to review my position and my stomache flutters with anticipation.
highalpha1 wrote: What 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.