RE:RE:RE:2022 CAPEX and Stock Price....Forget Reserves, Production is nice, but as the debt is peeled back (all other variables held equal), the stock price will rise.. all but assured. Lowering debt in EV will increase EV on the Market Cap side..
We do want a rising stock price don't we? ! ? ! ?
This decent enough analysis for you burgersandfries, or should I park it for the night?
~The Great Cheadle.
Cheadle12 wrote: I'm going to push back on this a bit gonat, respectfully..
Go to slide 12 in the Nov deck, and you'll read very clearly:
"Target Excess Cash Flow (Free AFF1 ) to Reduce Debt or Increase Production in 2022" This Press Release confirms, what many have been waiting for, their capital plan and debt reduction plan. This is significant. In my view, if they continued outspending CF into 2022 and there were 'major' commodity dips (i.e. new viruses, global events, Canadian Poli etc).. Crew would be in more severe trouble than we'd think.. would be $400M in debt and the term note would be due for renewal.. not good.
This is a smart, confirmed plan now and the street will welcome it.. the street wants FCF and pristine balance sheet (reduce risk).. Look at Storm Resources, there is a reason why storm sold for nearly double the market cap of Crew ... impeccible balance sheet, despite the same production, and less assets.
https://crewenergy.com/wp-content/uploads/2021/11/21-11-08-Crew-Investor-Presentation-FINAL.pdf
gonatgasgo wrote: I personally think it is a non-event. Every single number they gave in the news release was already in the November presentation and these numbers have not changed for a few months.
TouchDown12 wrote: Any re-rating of the stock/stock price (good or bad) as a result of the 2022 CAPEX budget out tonight? Just looking ahead.... TD12