GREY:CEQXF - Post by User
Post by
exprohibition18on Jul 31, 2018 12:00pm
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Post# 28391784
the fallacy of 6X ffo
the fallacy of 6X ffoNuvista an excellent NG company with high weighting to condensate/oil = 33%
Current production 29.7K boe/day
Current full ev of 200MM in net debt+ 1.445bil in mkt cap= 1.645billion
=55K/ flowing bbl for this blue chip top quality name
With adjusted funds flow of 200MM - they also trade at 8-9X funds flow- not dissimilar to DEE
#s seem to say higher than 6X FFO certainly in these cases
Not saying we fully belong in 55K /flowing camp yet(despite similar mix now) - but again- 35k /flowing not unrealistic imho
particularly with all the potentially needle -moving drilling ahead