The King - #1 Pure Play Montney Condensate ProducerRBC says we are in an Oil Super Cycle
With Seven Generations going to the Dark Side, Karr will shine as the best condensate play in Canada or perhaps even the entire world....
Karr by itself have more then enough resource for 25 years, and it produced 53% liquids that are 87% condensate.
With oil around 60 dollars U.S. - Condensate 62 dollar U.S.
Karr by itself will generate between 350-400 million dollars in FCF yearly.
So the billion dollar question.
What is Karr worth? 350-400 million dollars for 25 years.
That is somewhere between 8.5 - 10 billion dollars of FCF.
Say 20% of that value 1.7 and 2 billion dollars.
Karr would play back all the cash in 4-5 years, sounds pretty cheap.
Karr by itself could generate 350 - 400 million a year in FCF or $2.60 to $3 dollars a share for POU.
Based on Karr alone POU should trade at 12 dollars at 4 X FCF , and 41,000 boe is the Q4 forecast, Q3 is 37000, to 39000 for Karr.
IMHO