How to make an extra 80 million in a Quater
Ask POU how you make an extra 80 million dollars in a quater, well it not hedging, and it not even by bringing on new production, with NVA trading at almost 5 dollars and POU owning roughly 40 million shares the share appreciation in the last quater has been close to 2 dollars.
So effectively POU took out 80 million in debt, or added 60 cents a share in value in the last quater just by own NVA shares. Well how does that make the year end net debt number where that had a forecast of about 500 million, it brings it down a lot closer to 400 million, and into the range of 0.8 times adjusted Funds Flow. (DEBT TARGET EXCEEDED)
Condensate 95 dollars
At 74 WTI we are looking at condensate in the 95 dollar range, and if you hedge out for a year the forward average price over that year is 70 dollars WTI get economics and great future prices.
Q3 Looking forward
Well birch settled for 88 million dollars, and with 80 million in NVA stock appreciation, plus all their other investments like PIPE that has increased in value 25% and all the FCF generated in the third quater.
Q3 will be a significant reduction of net debt on the balance sheet, and we should see great results for new drilling techniques at Wapiti, as well as the monster wells that are coming in at Karr, and the longest latteral in POU history at Willesden green 4000 meters.
IMHO