CPG's Free Cashflow Yield 2021 & 2022In it's most recent publication, RBC published the free cashflow yi\eld of North American midcap companies in the O&G sector. CPG is projected to have the highest free cashflow yields.
Using the share price price of C$5.64 (what is closed at mid last week), CPG is expected to generate 16% FCF of its enterprise value (market cap AND debt) for year end 2021 and 22% FCF of its enterprise value for year end 2022.
This makes CPG among the cheapest stocks among the 30 companies in the midcap range that RBC evaluated. As several of you have noted, patience will be required, but the upside can be enormous.
CPG should be announcing a dividend increase in Q3 earnings report, however, if the stock price continues to languish and WTI prices remain strong, I could foresee management moving up the timeline for shareholder returns.
Hoping for this week to be better than was last week.