Painted Pony Pete Ltd PDPYF

RE:RE:What Montney land was going for before the Shell Fid

[bigreturn11]

JOHNNYBOYO1 wrote:

barneyj44 wrote:
Recent land sales have shown significant value in north east BC acreage PONY owns five largely contiguous land blocks totaling 201,009 net acres (314 net sections) of Montney rights in north east BC The weighted-average price per acre of land transactions for the past two years for Montney parcels which are proximate to PONY is $4,703/acre PONYs 201,009 net acres carry an implied value, using recent weighted-average per acre values, of approximately $945 million

That's pretty good to know if the numbers are accurate. That doesn't even factor in the massive production growth they've had in recent years.

That amount of $945 is a land only valuation sale at pre-LNG approval. As per the investor presentation, the total current debt in June/July was $400M.  With a current market cap of $528M, the implied enterprse value is roughly $930M. 

So if the EV is presently $930M and the pre-LNG land value excluing production and hard assets is worth $945......do  the math to spot the value. We should be closer to a share price of $10+ which would imply an EV of roughly $1.9B. 

Also the projected $0.25 pre-tax earnings per share is off the charts in this market while considering 40% to 50% growth.

No brainer at $3.30 folks!