Crane Co T.CR

Primary Symbol: CR Alternate Symbol(s): CXT

Technology Scientific & Technical Instruments

Crane Company is a manufacturer of engineered components for mission-critical applications focused on the aerospace, defense, space and process flow industry end markets. Its segments include Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense and space markets. The Process Flow Technologies segment is a provider of engineered fluid handling equipment for critical applications. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles, truck bodies and trailers (Transportation). It also designs and manufacturers multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications.

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Crane Co > 7 well Pad 13 month Payout

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Comment by Cheadle12on Nov 12, 2020 2:42pm

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Post# 31886488

RE:RE:7 well Pad 13 month Payout

Nailed it, it's all about EV, not MC... and if EV is a large % of MC, then that's not looked upon favourably.

In the case of Kelt, and PXT, EV=MC. So the market cap is pretty reasonable even in a beaten down market. On higher cash flow and consistency, market cap will rise quickly, but not if it's anchored down with a high debt % in overall EV.

quote=gonatgasgo]Thank you BeattheOdds.

If Crew could just figure out how much they can generate in Operating Cash Flow after all these wells. If it is $100 M with 30,000boe/d, then great.

Then, maybe you spend half of the money to maintain production at 30,000boe/d and the other half goes down to pay the debt.

Investors want to know what they are thinking and what the plan is. I get that the price of the commodities is not set in stone, but if Crew could provide clarity on their plan, that would go a long way to support the stock price.

I get at the management's frustration of the market cap being less than the infra sales or the infrastructure on their balance sheet, but their EV/CF is why higher than average, so any sales will not transalte into an increase in market cap at the moment.

BeatTheOddsSqua wrote: Gonatgo, I did a quick calculation for the 9-5 seven well pad and using AECO strip price of $2.44 and estimated at $50 for liquids came up with the following:

From slide 11 November 2020 Presentaion
Per Well Sales Gas Rate 4,822 Mcf/day
Per Well NGL Rate 141 Bbls/day
13 months = 395 days

Sales Revenue per well = ((4.822 Mcf x $2.44) + (141Bbls x $50)) x 395 days = $7.43 million

7 Well Total = $7.43 million x 7 = $ 52 million

I am not sure if their sales gas volume is net of royalties or what the royalty rate is?

Assuming a royalty rate of 20% then the per well revenue drops to $5.9 Million per well which means that the $5.7 Million per well would include the completion costs.

If the sales gas volume is net of royalties then the well costs with completion is probably closer to the $ 7.43 Million per well.

Give it a try with both cases and see what you come up with.