NVA i would expect to open over 12 dollars - Big BeatThe condensate weighting for NVA is 33% per boe, which is very high, Pipestone is a high quality project.
NVA should trade at a significant premium, to other companies.
- Management rates highly
- Resource they are in the right neighborhood, Great resource
- Fiscal - needs a little work, but cash flow is fantastic, debt is under control
- Op Costs a little high, needs work
- Share Float reasonable
I think they said it themselves, that their best value is returned through the drill bit. I would say that there is likely a lot of flush production here, that is why a conservate estimate for next quarter with breakup.
If they continue with their growth, and growing cash flow i could see 17-18 dollars year end.
If i were them i would aim to exit the year at 70,000 boe and get the debt down to 200 million which is what they want to do. Then i would get the op costs down a bit, and fill up that plant.
The last thing i would do is buy back shares, 40 million shares are already tied up with POU, their float is really not that big, and will have trouble getting a big money interested, may have stock liquidity issues, POU does.
If the market is good should open tommorow at 12 dollars, i think it was a significant beat, and everythink is good. I can see this stock at 15 -18 dollars year end.
IMHO