RE:RE:RE:RE:RE:RE:RBC Estimate $17.64/boe Netback in 2020.Agreed, I wasn't hanging my hat or quitting my day job. I fully disclosed up front that my calculations were based on estimates provided by RBC and were unicorn,pie in the sky best case scenarios. The industry average P/E the Oil and Gas Integrated average of 18.
RBC's target range for 2020 is much much lower. They are looking at between 2.00-3.50 because of variable drilling results, volatile commodity prices, and limited access to additional capital to support growth.
However, I did show my work and shared sources of info. The dialogue has been respectful and constructive. I respect your feedback and opinions on this subject and I agree that my calculations are a moonshot best case scenario.
Let this be how we all conduct our discussions going forward.
Just remember, stock bull runs, like rebellions, are built on hope :).
Maxmoe wrote: Oh, and as you can see, neither netback,nor cashflow, are numbers you can hang your hat on in isolation. Just parts of the puzzle. Cpg is selling for < 2x cashflow for good reasons and because it's just absurdly cheap like the whole energy sector. My point was not to get too excited with quick back of envelope valuations based on netbacks x boe/d, or whatever that number was you wanted to put an 18x multiple on. Just trying to help. Like I said, like the target, love the enthusiasm but please don't bet the farm based on your math.