Post by
Rational43 on Jul 31, 2023 12:52pm
No company even close to as cheap in Canada as SOIL
Its tough to find a South American oil company this cheap, but trading with CF > MCAP (under 1 x CF) is insane, for a high quality light oil producer.
That's with lowball hedges (eliminating downside but limiting upside)...when hedges roll off its additional upside.
This quarter will be great for earnings (gain on hedges) and next quarters will be crazy cash flow with 30K bbls/day.
People will be buying this at $4 early next year expecting a run to $8 or $9.
Comment by
Rainyday on Jul 31, 2023 2:06pm
When the stock price goes above $3.00 it will become marginable at various brokers and probably followed by more people than it is now. That will also help increase the stock price.
Comment by
Rainyday on Aug 09, 2023 12:15pm
The company projects debt outstanding at the end of 2023 at $345 million. With production of 30,000 B/D and a value of (say) $30,000 per daily barrel the Enterprise Value is about $900 million. Subtracting the debt of $345 million leavess $555 million which when divided by 138 million shares outstanding gives a value per share of $4.02. Very undervalued I think.
Comment by
Rational43 on Aug 09, 2023 5:06pm
$30,000 per BOE/D? This isn't a crappy NG producer, or even a less crappy heavy oil producer. These are light sweet barrels, getting $100+ CAD per barrel, not $15 CAD per BOE for a "BOE" of Natural gas...which isn't very equivalent at all.
Comment by
Rainyday on Aug 09, 2023 10:37pm
I agree with you - I was being very conservative.
Comment by
Rainyday on Aug 11, 2023 11:22am
Maybe this will happen soon - SOIL is doing well today.
Comment by
ahkow42 on Aug 01, 2023 12:12am
This post has been removed in accordance with Community Policy