Post by
MyHoneyPot on Jul 17, 2021 1:46pm
Birch 88 million - 66 cents a share - POU is even Cheaper
Best Investment in Oil + Gas
So I guess that it time to review the investment that can't simply be measure in terms of CF basis, but on a CF basis it measures pretty well and the balance sheet is getting stronger.
Almost every company in the Canadian oil industry owns former assets that on belonged to Paramount Resources, the industry thanks you.
Companies like Waterous, Meg, Arc, Athabasca, Ener plus, Pipe, Todd, and the list goes on.
Why should I buy Pou today, it looks like this? June 17 debt after the Waterous settlement was about 635 million dollars, Now birch closing will reduce that by another 88 million (July 17), or net debt of 547 million, then take off 200 million for publicly traded stock, that about 347 million, take of 65 million for drilling rigs book value, that leaves 282 million in debt, then all the private company shares they hold, I think these stocks are work at least 50 million, that 232 million dollars. Then ask yourself what 1.3 million acres or oil sand leases and over another 1 million acres of land it work. The company has not debt, it is simply a cash cow.
Now if you look at slide 4 of the presentation, 70 U.S. dollar oil mean more than 365 million in FCF next year.
!!! DEBT FREE – 2022 !!!
So really that have about 232 million in Net Deb, but they keep generating free cash and they are going hit the wall, be in a problem situation, no debt. That is usually makes you a takeout target, but when you president controls half the shares in the company, no problem here.
Now you have Karr and Wapit in harvest mode with enough resource for more than 25 years, worth about 5 billion between them.
A land company, a drilling company, a exploration company, an oil sands company you got it all with POU.
It’s the Pipeline (Its not priced into the stock)
The best time to buy a mining company is after they have DE risked the resource and are building the mine. POU has DE risked Kaybob North, Kaybob South, Clearwater, Willesden Green, Smoky Duvernay, Kaybob Montney Oil, Horn River, Liard.
IMHO
Comment by
uncutgems on Jul 20, 2021 8:42pm
prime grade A real estate in NE BC given up for a "song"...tank you very much...