Painted Pony Pete Ltd PDPYF

RE:RE:LNG Exports

[robt1234]

2025??? Sabine Pass is due to be operating this year and will take up 6% of US production - end of NA glut might bring a bidding war NEXT year. BNP Paribas expert says the average NG price for all of 2016 is going to be a dollar more than this year. That dollar goes to the bottom line. When a company makes a dollar a year and triples its production (PPY will do so by 2017 and double again in another 2 years) it has huge gains in NAV. When a business is no longer risky it sells at NAV7 Rather than NAV10. For the purpose of impressing let me illustrate. In simple terms $1 profit times 30,000 (understated 2016 boepd - will be 40,000 in 2017, 100,000 in 2019) less taxes if there are no carry forward losses comes to about 365x26,000=81,000,000 divide by number of shares. Then look at the next year and so on. The price of NG will be high still in 2017 according to the same expert. If the average selling price for NG from 2017 to 2019 is $5. it will still be less than it was last year. People will soon see all the LNG plants are not being built by idiots and often there are buyers of the product in the consortiums. I estimate no well funded gas co in Canada will see at less than their projected volume for 2016 times profit times twelve. In PPY's case I say a fair price for it today is a multiple of 2017 projections due to their very certain ramp up per the presentation, without any new drilling results. About 1.9 billion bucks. That translates to $20. per share in today's money. Of course once a feeding frenzy over scarce currently available gas starts and limited assets are available after a few more buy outs like Progress - that is likely a very conservative number.