Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Crane Co T.CR


Primary Symbol: CR Alternate Symbol(s):  CXT

Crane Company is a manufacturer of engineered components for mission-critical applications focused on the aerospace, defense, space and process flow industry end markets. Its segments include Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense and space markets. The Process Flow Technologies segment is a provider of engineered fluid handling equipment for critical applications. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles, truck bodies and trailers (Transportation). It also designs and manufacturers multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications.


NYSE:CR - Post by User

Post by mrmomoon Apr 04, 2022 9:17am
243 Views
Post# 34572526

Food for though for the CREW here

Food for though for the CREW hereJust a little something to think about, for the folks here, as there's seems to be a renewed interest from investors in an increased potential for a buyout of Crew after the Leucrotta deal. In this repsect i agree, but i caution folks this is NOT a reason to just buy Crew. So for my fellow investors on this board, many of whom i've not seen in quite awhile, this is for you and hope it helps you in your endeavors in the future. A little disclaimer here, i am NOT presently invested in Crew, and don't  have any plans to be as of this date, but was heaviliy invested in the stock two years ago (to this day almost) when it hit just barely over a dime. I had unloaded all my position around $1 some time ago. So motives on my part to do this wite up are begnin....

So what would Crew be REALLY worth in a potential buyout? If we go according to the latest M&A event, which is the Leucrotta deal with Vermilion, we get the following. This deal is a perfect template to derive any possible asset value for two very important reasons. One the production profile of both Crew & Leucrotta, though not exactly the same is pretty damn close. Two, they operate in more or less the same area, with Crew being in a more remote region. But infrastucture is comparable though.

The Leucrotta deal with Vermilion was done for $500M. As we've already explored the deal on a production basis, we will now focus on an asset angle with regards to reserves. And what any potential value could be given to them in a possible buyout scenario. As both LXE and CR both had a small contigent of oil P&P oil reserves, i've removed the value for this portion to focus only on the NG aspect, as this was probably the reason why Vermilion made the offer for Leucrotta. So having done this and having extrapolated a value for only the NG side, i've come up with a pretty accurate value of about $7/boe for the NG. If we apply this to Crew, in a potential buyout scenario of course, we get a NAV of $2.8B or ~$14 per share net of debt. You can agrue a further 15%-20% discount for Crew being in a more remote area than LXE, but this flexible & debatable. Reserve distribution between LXE & CR are pretty similar, so numbers shouldn't be far off.

A little word of caution here, before anyone decides to jump into Crew thinking it's a bargain at this price. Remember, my assessment here is ONLY in the case of a potential buyout to monetize the assetes and DOES NOT reflect Crew's value in the day to day operations. In addition, i still believe that oil prices at over $100 WTI is unsustainable long term and a sign for folks who've been invested in this sector for a long time to take some profits. I don't rec'd anyone to invest in the heavily leveraged oil producers, as mentioned before, and should one wish to continue investing in this setor, to focus on NG ep's like Crew. As there are global macro events being played out that have changed the game for NG, and could have potential paradigm shifts incoming for this asset.

GLTA
<< Previous
Bullboard Posts
Next >>