RE:$80.00 wti by summertimeOil may be over-bought at this point in time. For BRENT to hit US$80 there would have to continued supply cuts, that would reduce significanly existing inventory, and a dramatic pick up in demand from airlines and retail usage. These factors are unlikely to happen this year. I would suspect that at some point in the near future WTI will pull back to ther low $50's.
I would agree that even in the low $50's, CPG like other Canadian energy companies, should be trading at much higher valuations. I suspect that CPG is still at a 50% discount to where it should be. It has been pointed out that this sector today is valued at much lower multiples than it has in the past.
With the very high likelihood of consolidation in this sector, and possible complete buyouts - I would repeat that CPG has to start to return value to shareholders by way of a dividend increase and NCIB. They have done a great job of reducing debt. I would also state that this company NEEDS a much strong set of Board of Directors that will impose greater stewardship. As noted in this blog, the management receives way too much compensation in comparison to similar companies.
A divided of $0.12 per share annually is very doable in tandem to continuing their previous NCIB.
If they dont - the company will by bought out - the management will likely be fired - and another major will walk away with cheap assets.
If you bought this company at $3.00 - and let's say Exxon want to pay you $4.80 or even $5.00 per share, (when the last close was $4.00), would you say no?
Craig, start packing your suitcase!