RE: RE: RE: RE: the big picture
WFE is my top holding and every now and then I like to rationalize that investment. This will be one of my final posts for the next while, since I am now fully comfortable with my stance ...
- WFE trades 4.7x 2012 P/DACF, with production to increase from 5,850 to 10,500 boepd (80%).
- LEG trades 6.5x 2012 P/DACF, with production to increase from 12,700 to 16,500 boepd (30%).
- CLT trades 10.8x 2012 P/DACF, with production to increase from 17,000 to 30,000 boepd (75%).
P/DACF ratio for the whole Junior peer group trades at 5x, while Intermediates trade at 8.5x. If WFE were classified as an intermediate, then apparently we would be trading at $8.50/sh or thereabouts, assuming it was just AVERAGE, and using the CLT multiple gets me to $11/sh.
Does anyone know when a Junior becomes an Intermediate, officially that is ...