Undervalued nowIf investors are selling off pou due to the recent BMO aeco report expressing slight concern that pou maybe vulnerable to Aeco prices, “Paramount Resources is currently the most leveraged to condensate pricing dynamics, with approximately 44% of total production being condensate (52% condensate and other liquids)”. The Aeco pricing becomes a rounding error when pou increases its’ condensate exposure which will push 50%+ in 2018. Pou will be earning $13.50 fcf with no debt in 2018. Expect non-core land sales to push $200m-$500m in short order.
Also just heard that CES has hit the bond market much the same way that Vii did several weeks ago. Would be interesting if pou accelerates waipiti, willisden green, and/or Smokey Resthaven to take advantage of the supply squeeze which is sure to occur in late 2018.