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Bullboard - Stock Discussion Forum NAL Energy Corporation T.NAE

TSX:NAE - Post Discussion

NAL Energy Corporation > the numbers
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Post by themangokid on Dec 07, 2011 2:33am

the numbers

doing some homework tonight on nae's numbers in comparison to other former trusts.

enterprise value/debt adjusted cashflow
(1)  baytex, 10.8
(2) crescent point, 9.4
(3) peyto, 8.1
(4) daylight, 7.5 (in aug when the shareprice was around $9 the ev/dacf was 6.1)
(5) pengrowth, 7.3
(6) pennwest, 6.5
(7) nae, 5.8
(8) pmt, 5.6
(9) pbn, 4.3

net debt/cashflow
(1) crescent point, 0.8
(2) baytex, 1.1
(3) peyto, 1.4
(4) pengrowth, 1.8

(5) pennwest, 2.1
(6) nal energy, 2.3 (estimated to be 1.8 for 2012)

(7) daylight, 2.4

(8) pbn, 3.3 (estimated 2.6 for 2012)
(9) pmt, 5.9 

kind of disheartening to see nae lumped in there with perpetual energy using ev/dacf.  however, when you look at the net debt to cashflow metric, it becomes evident that nae, in no way, belongs in the same group as perpetual, imo.

price to cashflow 2011/2012
(1) baytex, 11.7 / 10.4
(2) crescent point, 10.1 / 9
(3) peyto, 9.6 / 7.1
(4) daylight, 6.5 / 6 (was 6 and 4.6 in august)
(5) pennwest, 5.9 / 4.8
(6) nae, 5.7 / 4.5 (probably a little less now as these numbers where taken from the november cibc report when the shareprice was $9ish)
(7) pengrowth, 5.6 / 6.3
(8) pbn, 2.8 / 2.2
(9) perpetual, 2.2 / 2.1

baytex and crescent point trading at a premium cuz they are clearly the best run companies with great assets.  perpetual and pbn trading at deep discounts to their nav cuz their debt is so high.  perpetual, i think is dying a slow death, unless they get bought out, and pbn, i think, will leverage their great assets and production growth to climb outta their hole.

cashflow % increase from 2011 to 2012
(1) peyto, 35%

(2) pbn, 28%

(3) nae, 28%

(4) pwt, 15%

(5) crescent point, 12%

(6) baytex, 12%

(7) daylight, 8%

(8) perpetual, 2%

(9) pengrowth, negative

here is the hope for nae.  pretty good growth expected next year and beyond.  not that I think nae will cut their div but its nice to see with these 2012 numbers the div should be solidified and shareprice should stabilize if oil stays above $80 and markets dont tank.

Comment by terroir on Dec 07, 2011 10:33am
Hey mangokid,Thanks for the homework. Adds to the firm commitment that this is a high potential buying opportunity rather than a reason to sell.I have averaged down, and continue to do so. Feels so much like Daylight where I ended up big time long both in shares and calls.One thing, if the debentures maturing in August have to be paid for in stock at around $7 ( it would actually be priced at 95 ...more  
Comment by Kherson on Dec 07, 2011 6:31pm
Great work kid. I bought more today. There is no doubt that at these prices, NAE is a great buy...Kherson
Comment by LoganCopper1 on Dec 07, 2011 7:28pm
As did I Kherson at 7.05. Not a bad entry point, lets see where it goes, tax loss selling is likely coming to an end IMO (if thats what is driving the decline in price)
Comment by themangokid on Dec 08, 2011 9:10am
it does feel an awful lot like DAY.  I've been waiting for oil to have a big down day or for the dow and tsx to have a significantly poor day before I add any more to my nae.  Nae may run before I get a chance to add but I already have enough oil exposure and I dont want to add (apart through the DRIPs) any more when oil is above $100.  Looking at the numbers, I posted before, I ...more