Those who sell at these prices need to visit the rehab asap.
Despite the fact that the insiders keep spending a significant of their monthly salary to buy shares, check out CXPO , the latest energy deal.
CXPO (Crimson) produces 6,100 boepd (ONLY 45% oil and liquids) and has 19.5 MMboe Proved Reserves (ONLY 47% oil and liquids).
CXPO is heavily indebted company with $244 million debt and huge losses every year.
CXPO was sold few days ago to Contango for $400 million !
The transaction metrics are:
$65,500/boepd and $20.5/boe of PROVED reserves and PBV = 2 !
The LAW FIRMS attacked CXPO insiders immediately for breaching their fiduciary duties because those metrics were lower than the other similar deals.
Including the temporary production cuts due to several reasons, SCS has ~2,000 boepd (75% oil and liquids) and 7.2 MMboe PROVED and 12 MMboe 2P reserves. SCS is way more oil-weighted than the heavily indebted CXPO.
Even with the natural gas weighted metrics of CXPO, we get:
At PBV=2, this gives $2/share acquisition price.
$0.55/share and $0.45/share per reserves and per production.