GREY:LSTMF - Post by User
Post by
JohnDDon Jun 08, 2014 7:55am
641 Views
Post# 22640801
Break up Value
Break up Value Here is my break up value calculation of LTS
44,000 boe/d * $110k/boed = $4,840k
I will note that the company has been selling on average at closer to $115k/boe/d and that is for properties with a higher gas weighting than the overall company.
Net debt = $1,950k (2,300 less 350 million of dispositions)
Break up value $4,840 - $1,950 = $2,890
Assume 215 million fully diluted shares outstanding.
$2,890 / 215 = $13.44 per share.
I could run sensitivities at higher and lower sale metrics, but seems to me that LTS continues to remain undervalued. Given these metrics, I would be fine if the company continued to sell their assests until there was nothing left.
John