RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Now you are talking my languageAgree with all your points. I'm not wagering on WTI price but an expanding resource base in a time of physical and political shortages [and suddenly (to everyone not paying attention) NG is getting interesting at US$5.50/mmcf at the end of March]. So hard in this uncertain market to 'be right and sit tight'
I think the approach of combining no debt with FFO=capex will turn out to be the right move in a $70+ WTI environment. They'll have a NAV of 2-3x share price in a year or two. Netbacks of ~$22/boe for 2023 feels pessimistic to me, but still covers the capex program to keep the NAV growing.
I think once they get to the inflection of generating material FCF (say...18 months) they'll either be shopped around if the equity remains cheap or shopping around if they're trading at a justified premium.