Alistair Toward, PI Financial (11/5/12) "Having sold its Cardium, Viking and Mississippian inventories, Equal Energy Ltd. offers less upside than before,
but the dispositions have pushed valuations down to ridiculous levels. Currently trading at just $18K per flowing boe, Equal is hardly a company without opportunity; it has kept the Hunton, always the most capital efficient asset, and with some ~50 locations identified, drilling will likely resume in January, taking volumes back through 8 Mboe/day. . .the pricing trend with these commodities is now decidedly to the upside. . .we reiterate our Buy recommendation."
If this stock was trading at just $30 per flowing bbl the share price would be trading at $5.70. We need to see gas and NGL prices move up some more this winter and along with offering a %7.5 dividend this share price should be easily achieved.
From an asset valuation perspective, Equal is one of the (if not the) cheapest Oil and Gas E&P companies in anyones peer group.
Once the company is converted into an income entity, it will attract a whole new set of investors.