RE:10XThere are many stocks that could be a 10 Bagger with really high ($150+) oil prices. Increase CF by 300%, buyback 20% of shares and assume the market expands the EV/CF by a multiple of 2 (to historical norms). If all this happens the math works out to a valuation bump of 10 times.
I can think of a lot of companies that could do this. The multiple expansion is not far fetched nor is buying back 20% of shares over a few years.
With regards to increasing CF by 300% there are many pathways to get there including:
- Increasing production
- Operational efficiency to lower your BE by $10 barrel thru technology and controlling fixed operational costs with high production
- Getting better market prices through enhanced egress
- And of course sky high oil prices that will be with us for many years
This is why many of you will be multi millionaires if you ride this bull run long enough