OTCPK:AETLF - Post by User
Comment by
InvestLargeCon Jun 30, 2016 4:59am
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Post# 25011288
RE:RE:Deal Closed, Debt Is ZERO
RE:RE:Deal Closed, Debt Is ZERO Based on the merger ratio (77-23) and AEI's current price of C$1.40, the new LONE PINE has Enterprise Value at about C$115 million.
New LONE PINE has also 4,000 boepd (71% oil/NGLs) and 18.5 MMboe, so it currently trades at just C$29,000 boepd and 6.2/boe! These metrics are extremely low for an oil-weighted producer with such a rock-solid balance sheet. See also and compare to the key metrics of the recent deals in Alberta (SPE, GXO, TOG, PWT, RRX etc.) with oil-weighted assets.
New LONE PINE has also Operatorship and cheap and shallow light oil Mannville wells.
They has also C$55-C$60 million credit facility and only C$6 million debt at closing in September.
New LONE PINE has also debt to annualized cash flow ratio at about 0.2 times, because its quarterly Cash Flow is C$7 million in Q4 according to the corporate news.
New LONE PINE has also a 3-year hedge book! You can't find such robust hedge book even in CPG!
But yes, you can wait and you can buy the new LONE PINE at C$3. It's your money.