RE:Stock priceAs long as the oil and gas prices cooperate this stock can go a lot higher assuming the market ever figures it out
Think about it: RMP cash flowed 20 cents a share in the first quarter with producttion of 12,250 BOE/D and a BOE price of $38.50. In April they were producing 15,500 BOE/d with another 1500 offline at Kaybob, some of which has now been brought back on. The BOE price for the second quarter will likely be in the $60-$65 range. That is a ton higher than $38.50.
The big question is whether or not they\re choking off production at Ante Creek and that news should be out at the AGM in the next month. Even if they are, their cash flow numbers for the rest of the year (again, assuming oil and gas prices simply hold up here) are going to look pretty good.
It's pretty conceivable they CF $1-$1.15 a share for 2015 (quite a bit more if the oil and gas prices move higher). With a 5X multiple that takes the stock to $5-$5.75 by year end on a fairly conservative basis.
With even modest EOR success at Waskahigan and Ante Creek you get the added bump of reserves and what that might do to propel the stock price in the next 8 months to a year.
That doesn't include the results of any new drilling and RMP has not had problems with drilling success-they just brought 2 of the newest top 5 wells in Western Canada online in February/March. Or any decent results from their most recent land acquisition which they are currently keeping under their hat.
Plus the stock already trades (don't ask me why) at a significant discount to its peers when it has better overall numbers, lower debt, prolific wells at Ante Creek etc.
If the company ever increases guidance and/or you get positive revisions from analysts this stock has/will have a lot of upside. Really a lot of upside. I believe that's a strong possibility.
That's why I'm way overweight RMP and don't worry about it. Sooner or later the market will wake up to it.