RE:Crew's market cap is less than it's facility interest value?Totally agree, but the challenge and main theme in O&G (nowadays) is EV. Debt is such a large percentage of EV for Crew that market cap has become irrelevant. For example, if the market cap is so low, why not an NCIB and buy back 1/3rd of the company's shares? The reason is that the debt has to be prioritized. Fortunately for Crew, they have time.
Crew needs to:
-Balance production growth with keeping debt around $300M.
-Ensure production growth profitably brings FFO to $100M.
-Sell non-core assets to pay down debt to $200-250M.
Get D/CF to around 2x and they should be in great shape for a long term LNG play or to be acquired for a nice premium.
BeatTheOddsSqua wrote: Slide 5 is my favorite from the November 2020 Presentation. Do you think Dale and the gang are just a little frustrated by Crew's share price? Crew's market cap at $0.40 is $62.2 million, even after they sell a 22% facility interest for $70 million and retain a 22% interest which theoretically is worth $70 million. Too funny.