Post by
drunk@noon on Feb 21, 2024 11:03am
Cap ex and production work out to 43 per B0.
At current brent price---no one knows where price is going--but using 83 you are talking 40 dollars US. netback before taxes.
Not sure about cash taxes but take off 1/3. That leaves you with 26.8 per BO. Convert to CDN gives you $36 Cnd. Use 21000 bopd, and you are talking 276 annualized aftertax and after cap ex cashflow. Knock off 26 mill for SGA and you are talking 250 million free taxflow flowing through the door. Short term asset I know, and what are we talking 200 million abandonment expense. But with half a million pouring through the door over the next 20 months alone with likely 4 years of inventory left at that point, Assuming only 20% production replacement---you would still have 1 Billion of cashflow rolling through the door before the money train stops.