GREY:LSTMF - Post by User
Comment by
JohnDDon Oct 09, 2011 9:39pm
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Post# 19133969
RE: Daylight take out @ $10.08
RE: Daylight take out @ $10.08Some quick math...
Daylight Entreprise value = Equity ($2.2 B) + Debt (1.1 B) = 3.3B
Price per flowing BOE = 3.3B/38,000 BOE/d = ~$87,000 / BOE
So if PBN was sold for the same price per flowing BOE, what would the shares go for today?
Projected total purchase price of PBN = 43,000 BOE/d * $87,0000/BOE = $3.7B
Enterprise value(total purchase price) = equity + debt
Equity = EV (3.7B) - Debt (1.7B) = 2.0 B/187 million shares outstanding = $10.70 per share .
I sure hope we do not sell out for an equivalent price per flowing BOE or I will take a huge capital loss. I would vote no at this price. I need a price closer to $16 to come close to breakeven.
Be interesting to see if another offer comes through for Daylight at a higher price. Did not review any of the details on the offer or agreement by Day mgmt. At a minimun this offer should cause the price of PBN to move up - at the very minimum it will cause some additional risk for the shorts.
Welcome any comments on my analysis.
John