The cup is full, where do we sprinkle the Water.
Not only did POU do a magnificant divesiture that is potentially valued at more than 4 billion dollars, they did it in a tax efficient manner selling a division, after loading up the balance sheet with Apache tax pools.
What people often don't think about is what is Cavalier Land up to? The company that occasionally show up at land sales, and really plays their cards close to their chest, just like JR..
Before we go any futher i am loading up here on POU full disclosure because i can't see any downside risk when the company is sitting on almost 4 billion dollars in cash, securities, and assets separate from their oil and gas assets.
I was looking at a NE montney play, 150 sections, with esentially no production, that will bring their first pad on April 1,2025 (COELACANTH ENERGY INC) , they almost have a market cap of 500 million.
Now POU has Cavalier who has been working tirelessly on generating ideas, with greater than a 1.3 million acres of land in their land bank, waiting for their exact moment to capitalize these new ideas.
Plus POU has lots of opportunity to speed up wilesden green, get the north duvernay to 16,000 boe very oil rich, and review the results of sinclair and develop the plan.
In the corporate presentation is says Liard/Horn River are in appraisal, maybe they will drill on of the larges gas wells in Candian history. Because they can....
POU is simply to cheap here!, and the timing is good for the divesture, and with no debt and all their cash in the hands of JR, where oil runs in his blood, it going to be and exciting 2025.
I think the stock will go a lot higher than what scotia bank thinks, and Eric Nuttal himself say POU may be the cheapest energy stock in North America.
Off to the races, and i am loading up, and going along for the ride.
I have been a loyal POU investor for many years, and recognize these opportunities only to well, last time they sold Kakwa to Seven Gens, keeping Karr for themselves and buying wapiti from Apache when they bought the entire company. Plus a got some special dividends, and share in Seven Generations.
POU is likely the most active company in Oil + Gas for developing land assets and spinning them off.
IMHO
MHP