RE:Imagine potential Kelt is a perfect takeover or go private candidate*: no debt, excellent prospects, significantly undervalued** and with significant insider ownership*.
** I took a sample of 15 publically traded Canadian E&Ps ranging from the lowest valuation CR to the highest valuation CPG and the average (non weighed) increase from the 52 week low is a little over 5x. Kelt is 2nd lowest at 3.33x. Only SRX is lower at 2.94x. Moreover, TVE is trading at $50,000 per flowing BOE as is WCP and in my estimation, Kelt is on the cusp of being a 35,000 boepd company with similar netbacks to TVE (less liquids but less hedges and less interest costs), not to mention that by the time TVE*** reduces debt, Kelt's volumes will have surpassed TVE. Which would put the share price at $9.26. Even at the average 5x increase, Kelt SP would be $7.75.
Let's see what happens tomorrow but at some point as a shareholder you have to say NO MAS to fighting City Hall (Bay Street).
*** what is even more ridiculous for Kelt's valuation vs TVE is their growth has come at a $50,000 cost per BOE in additional shares (dilution) and debt whereas Kelt is essentially growing from cashflow ie no additional debt and no dilution, every additional BOE of value is going straight to existing shareholders.
//rant