RE:RE:RBC Estimate $17.64/boe Netback in 2020.Maxmoe wrote: I like the results, but it's not quite right. Net back does NOT = net income. Lots of companies have net backs of 17.64 or higher. Much higher. Most of them also have substantial cash flow, and maybe even free cash flow. Unfortunately, very few, I don't want to say none, report net income. That's the biggest flaw, but in addition, 18x earnings is what? The average for the entire tsx? Most producers report losses at the earnings line. Lastly, I've never been a big fan of RBC research for its unbiased opinions, but if they have a net back forecast, they must have an eps forecast. What is it? My cynical comment would be RBC is using flattery to fish for underwriting or some other fees. But yes, if pipe hits 16000 boe/d sooner rather than later and lays out the path to 30 or 35k than the stock is going much,much higher. Be long or be wrong baby, yeah!
Our good friend Garth talked about
operational netback of about $29.
PIPE quickly brought this down to about $21 (just a tad more realistic).
So if RBC comes up with
comprehensive company netback of $17, I find that to be reasonable.
Also, it is my belief that we will produce more than 16K boe/d as an average for 2020.
Reasons: existing capacity (wells, infrastructure, (flexibility in) off-take agreements.
My name is John Snow and as the girl said: "I know nothing".
However, my guess for average production in 2020 will be ~20K boe/d.
Uncertain is what they'll do with the proceeds. All goes to decrease debt?
Makes PIPE a stonger company. Who's in favor? Well, .... I am.
My prognosis for year 2020 end for shareprice remains between $5 and $7
Good enough for most of us.
Definitively hoping for Skiptoggle to be right on the spot though.
Have fun
P.S.: Still watching for donut's valuable contribution.