Rampup Capacity - Highly discounted to CPGIt looks like if WCP could get a rerating quickly all they need to do is add about 20,000 boe of production.
At the end of the first quarter WCP was producing north of 175,000 boe a day, then the added another 4 well pad on at musreau (April) that would automatically add 5,000 boe/day almost immediately.
WCP my guess is currently north of 180,000 boe/day currently. The 3 additional duvernay wells will add 5000 boe/day in Q2. that takes them to 185,000 boe/day.
Filling up the Musreau Battery (8 additional wells) woudl add 10,000 boe, then all you need is about 5,000 more boe/day. 3 additional duvernay wells would do it, and your very close to 200,000 boe day.
CPG enterprise value should be the similar to CPG 7.6 + 4B debt = 11.6 Billion dollars.
WCP enterprise value is 6.3B + 1.5B debt or 7.8 billion.
So CPG is valued 3.8 billion higher than WCP. 3.8/6.3 = 60%
So adding 20,000 additional boe/keeping production flat would add $5 dollars roughly to Kelts share price. Totally doable.
WCP should spend its full capex budget in 2024, and get as close as it can to 200,000 boe/day.
My guess is the stock would appreciate 50% in value and you would still have half the debt of CPG.
IMHO