GREY:WFREF - Post by User
Comment by
pppon Dec 01, 2014 8:15pm
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Post# 23183661
RE:RE:Caution
RE:RE:Caution | LRE's enterprise value is a touch over $1B now, or about $27K/boe. That's about half of similar companies. LRE is riskier due to their high debt load. Does the risk justify 50% lower valuation? I personally doubt that. I also doubt that the dividend is much of a factor because it can be cancelled quickly (and should be cancelled or lowered to 1c in Dec, IMHO).
This is why I think they will be taken out in the near future. Same thing happen to Renagade
before Spartan took them out. This would be a coup for a company like Whitecap. No one can
develope assets for 27000 a bbl. | |