GREY:CNKEF - Post by User
Comment by
stockfyon Dec 29, 2017 11:44am
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Post# 27245371
RE:RE:RE:Other analysts: Cormark, National Bank, Canaccord, GMP, TD
RE:RE:RE:Other analysts: Cormark, National Bank, Canaccord, GMP, TDCKE came though a major transformation because it became a pure Montney play in December 2016 when the Craft spinoff was completed. Investors stayed on the sidelines for two reasons. The energy sector was out of favor and also investors were waiting for the company's Montney results based on the new completion design.
In 2017, it became finally a pure Montney play and CKE drilled 4 Montney wells with the new completion design. All its wells were Condensate-rich and they were much wetter (and much cheaper) than the peers' Montney wells.
According to CKE's latest news, the 4 latest Montney wells with the new completion design flowed on average 1,800 boepd with 18% Condensate, not low priced butane and propane. These are amazing results because its Montney wells were cheap too. Just $4.2 million each.
The management style has not changed. They have been prudent and conservative capital allocators and they will remain so. It helps that they are not dependent on any bank, on any lender. CKE is also the operator of its acreage, so it determines its own fortune and the development pace in 2018 and later. There is no production growth rush. Don't downplay this.