Post by
drunk@noon on Dec 01, 2024 9:21am
The key factor of the investment thesis of Paramount
lies in the ROI and NAV metrics and the extent of their Duvernay inventory---based on, of course, a range of estimates one wan't to use for the price of condi/oil and nat gas. i.e they will have a wad of cash and a far lower market cap post special div/buy back---which will be invested and reinvested as they churn thew their inventory. i.e if they they get a 50% annualized return on a wad of cash that represents a good chunk of your market cap/EV and a long reserve life you have a great investment opportunity--which is especially attractive if now worthless nat gas, starts fetching $4 mmcf by mid june next year when LNG canada comes to life.