GREY:LSTMF - Post by User
Post by
JohnDDon Oct 02, 2011 10:53pm
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Post# 19110187
Value of PBN?
Value of PBN?If PBN was sold for $16/share what does that work out to in $/flowing BOE? Why do I choose $16 you ask - because that is what I would be happy to get out of this stock at. Interesting enough, I believe this is the price that the new chairman bought his 30,000 shares at only a few short months ago. Nice to see that he and I have some aligned objectives. :-)
I would look at the enterprise value of the company = debt + equity. That is the amount that a buyer ultimately has to pay:
PBN Debt ($1.7 billion) + equity $3.0 billion ($16 * 187) = $4.7 billion
Lets assume that PBN is flowing 43,000 BOE/day today.
$/flowing BOE = $4.7 billion/43,0000 = $110,000 per flowing BOE.
PBN has a lot of undeveloped land that is difficult to compare on a $/flowing BOE so that helps drive up the price.
Does anyone have any comparables using EV? Always hard to measure the value of the undeveloped properties that most companies own.
John