Post by
Druchii on Jun 16, 2021 1:50pm
2022 Free Cash Flow
Anyone have an estimate for 2022 free cash flow when hedge impact is less negative and acquisition production growth is absorbed?
Comment by
Mtklip on Jun 16, 2021 2:37pm
production of 40,000 boe, $70 oil, $40 cost of break even = FCF of $440 million
Comment by
Druchii on Jun 16, 2021 4:09pm
Thanks Mtklip, thats a huge number. if 2020 FCF is $440, how is their PDP valued at only ~$430M (with 10% discount), before acquisitions?
Comment by
Mtklip on Jun 16, 2021 4:42pm
the FCF number is rough, it's of course highly dependent on the oil price. I forgot to include their sustaining capex, which is probably 150 mil, but their break even is actually $36 now. So FCF is probably in the 300 million range. Still great.