OTCPK:ICPVF - Post by User
Post by
pablo87on Mar 30, 2020 12:25pm
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Post# 30860349
Valuation hasn't changed
Valuation hasn't changedFortunately. My analysis of the company grosso modo:
#1 oil sands pipelines - rock solid cash flow of $600M a year. If you value it at $8B, you could borrow $4B at 3% and be left with 12% on the $4B equity. Super high debt to ebitda, interest coverage of 5:1. Truly investment grade counterparties. Standalone can support $1 dividend at least.
#2 rest of business except Heartland - no tangible growth for 6 years, not that stable income, but since it was $400M+ cash flow in 2019, $3B?
#3 Heartland - $4B less what remains to be spent so $3B?
So $14B less debt of $7B, or $16.50. Every $1B above that is $2.36 so x 3 = $24.50. That's the range for me $16.50 to $24.50.