RE:RE:RE:RE:RE:RE:What will happen when CVS Albright comes onlineIn 2025 they could produce ~45k boe/d at 60% NG. With reasonable netbacks that's ~$375M in AFFO for the year (Q1 2024 of around $65M? Assuming they will outspend AFFO for both 2024 and 2025, that puts EV/AFFO(with some added debt) at around 3.5x for 2025, but on exit rate should be a lot less as production will end 2025 strong.
Growing unhedged gas volumes into an oversupplied in a capacity constrained basin hasn't been/won't be great for for the short term but the addions to the reserves and improved base production will more than offset the added capex to maintain production.
I agree with Pablo that LNG Canada won't be a panacea but hopefully this is the last summer of sub $1 AECO.
I think the next several months will be choppy and don't expect the production to come on like flipping a switch. Have some good days and bad days in there but at ~50k boe/d eventually this has to be worth more than ~$1.3B