RE:worth a second read while we wait Another...perhaps the most important point , is that Cardinal 's production is a mixture of light oil, heavy oil and natural gas.
Given the discount applied to Canadian oil and gas prices because most of the production does not have unfettered access to tide water...ie stranded..and hence does not receive Brent Pricing .
Take for example, Cardinal received $89.70 CAD per boe which is just $68 US per boe.
At $90 US Brent per barrel, Valeura with a production cost of just $22 US per barrel, has an operating margin that is the same as Cardinal's gross revenue per barrel.
Which is why Valeura' s free cash flow to the bottom line is over twice that of Cardinals.
Not to denigrate Cardinal as it is a good investment but with a market cap of $1.3 billion, Valeura should be valued at 65% or so on a comparative basis to that of Cardinal .
That computes to.....taking into account Valeura's much lower shares o/s.....about $9 per share, using Cardinal as a composite proxy.