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 > Any comments/thoughts on Crew's Heavy Oil Drilling?

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Comment by gonatgasgoon Feb 15, 2021 5:43pm

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Post# 32569687

RE:RE:RE:RE:RE:RE:Any comments/thoughts on Crew's Heavy Oil Drilling?

Thanks for sharing. Interesting article.

Cheadle12 wrote: If you look at Gear Energy, or Cardinal, they're generating very good FCF at these prices..so might be inclined to acquire some production/assets.

So yes, for sure, not a bad time to buy.. the lenders will be amicable around now also.

Check this article from David Wilson from several years back.. we're certainly coming out of the bottom of the cycle.. so if the time isn't now.. it's for sure in 2021.

I think that Lloyd asset will fetch $40-60M now. But they could continue to sell it off in parts, they've been doing that for several years it seems.

https://energynow.ca/2016/10/secrets-serial-energy-entrepreneur-david-wilson-ceo-kelt-exploration/

"That’s how it normally works; everybody thinks it should happen at the bottom of the cycle, but it actually happens when we’re coming out of it.” To make it occur, an equity window has to open up so the acquirer can raise money to do the acquiring, Wilson says."

~Signed: The office of the "The Great Cheadle".

gonatgasgo wrote: The Great Cheadle,

When oil was $35 and companies were in cash preservation mode, I could see why nobody was going to buy anything.

Now, with oil at $60, but companies still not spending their cash, do you think there might be hope for someone wanting to buy some land or operations?

My only fear is that any buyer will want a steal.

What do you think?

gonatgasgo wrote: That would be the best scenario.

Cheadle12 wrote: Could be a drill to sell.. get the production up there a bit, prove out the netbacks .. then sell off.

gonatgasgo wrote: Replying back to The Great Cheadle's discovery below, I think if they can drill and get their money back in 8-10 months, this is a good tradeoff. Gas, Conde or Oil, whatever provides the best return. They should probably hedge a chunk of the production just to be safe. Everybody is bullish on nat gas and oil, but nobody knows what is ahead of us.

2021 and 2022 is the time to drill and get the money back months later. 2023 will be a year to preserve cash since they really should pay down debt, even if they reach their target of Debt/EBITDA<2.

2021 profitability should be much better than expected...but there are still more than 10 months ahead of us! Debt will go up. I am hoping the market is not going to punish Crew for increasing their debt. They also have the option on an infra sale that they can exercise as early as Q2 2021 I believe.

The Great Cheadle12 wrote: Two new wells by Lloydminster. I didn't think they were drilling oil in Alberta in this capital program.

What are the thoughts here? Grow production, extra cash flow as the netbacks are very high on these oil wells?