RE:RE:RE:RE:Comparing Pipe to Cardinal EnergyIf you refer to my original post I pointed out their Market Caps were almost equivalent PIPE 268M vs CJ 265M. As for enterprise value you may want to actually check your facts there.
PIPE EV 368M and CJ EV 498M as of yesterday, which means CJ EV is 38% greater than PIPE for the time being. That is not close. Another fact is CJ is 80% oil 20% gas vs 50/50 for PIPE.
My comparison was intended to highlight the fact that PIPE is going to surpass CJ in terms of production in boed with the bonus, as you point out, with a more valuable commodity. PIPE is in growth mode and CJ is in more of a maintenance mode.
In my second post I pointed out I wasn't pumping CJ. I own zero shares in CJ. Conversely I wasn't dumping on PIPE, I think my post was postitive towards PIPE's potential. However, we have to look at what could happen with PIPE when they hit 33K and decide to hold that production level. What does a company do when it isn't putting every $ it earns into growth?
JohnFriesen wrote:
You do realise PIPE is already close to CJ's EV?
I just think it is a poor comparison, and I am not so sure CJ's dividend is all that sustainable.
What I am interested in is the fact that condensate is the highest value product in western Canada, and we produce a lot of it. That results in high netbacks, and solid cash flow.