Cenovus Energy Inc T.CVE

A Rundown Residential Shack Probably Cost Over A Million

[RagingBull3]

in Vancover or Toronto on a tiny lot off on side street......   Prime Commercial lots on primary through fare with established business....~$1.25 Million???  

Not to mention gasoline prices at the pumps near all time highs.   

Not to mention "vertical intergration". 


All just my opinion/view/thinking

[autofocus111]

RB I don't think this is a fair comparison. The underground soil at these gas stations is likely polluted and would have to undergo remediation to remove contaminants before being re-purposed for a different use. https://www.geoforward.com/gas-station-soil-contamination-testing/

[autofocus111]

That said, CVE got a lot less per station than IMO got a few years ago. I'd guess that the difference in selling price was related to the quailty of the real estate locations and the customer revenue generation at the sites. I had hoped to see better results on the sale, but it is what it is. >>>CALGARY -- Imperial Oil says it has reached deals to sell its remaining 497 Esso retail

[RagingBull3]

IMO......$2.8B / 497 = ~$5.6 Million per location....back in 2016 when gas prices down and inflation(property value) haven't rocketed up. CVE.... ~$1.25 Million per location..... Gas prices way up and inflation through the roof.   As for possible soil contamination.... I would assume that would apply in both cases.     That's a big difference.... just for "

[RagingBull3]

Thanks Autofuss111.... Your info gives good perspective on the price.... All I got/gave to offer was just my opinion with nothing to back it up except common sense.     All just my opinion/view/thinking

[mrbb]

back in 2016, EV wasn't even in our vocabulary. Husky had try to unload the gas stations since early 2019. I agree it is a mistake for husky to not sell them earlier, however, the business of selling petrol, car wash, and convenience store was atrrative.  Selling for cheap is still better than not able to sell them at all. There aren't many buyers out there now. 7-11 and Couche

[RagingBull3]

Then applying your method of thinking,  CVE is over valued....  EVs taken over and that's why retail station sold for so cheap comparatively.... this would in turn suggest CVE whole operations is over valued, as gasoline station going obsolete....which inturn means basically CVE going obsolete.   Then you decide to leave out real estate price factor and inflation. What an

[RagingBull3]

I assume CVE sold the LAND with the Retail Businesses..... you have to be an idiot to leave out real estate price and inflation in your evaluation of price. All just my opinion/view/thinking.