Eric Nuttall's Twitter estimates a 2.5x price multiple and an estimate of less than 5 years on the strenght of the company to repay debt and buyback shares (if they were going to buyback all shares).
We don't know the exact price that Eric is using to baseline the multiples but he has CPG at 2.5x. If we use:
CA$4.90 = $12.29 (@ today's price)
CA$5.00 = $12.50
CA$5.50 = $13.75
There are other companies with more aggressive multiples but what if the oil price continues to fluctuate? I'm pretty comfortable with hedging saftey and a 2.5x multiple price traget.
The buyback potential is signficiant, that's the chart on the right. This is where I think oil stocks will really shine in the coming years.
And hello. This doesn't look like the most welcoming board but I'm going to try to open a discussion anyway.
https://twitter.com/ericnuttall/status/1394634738221072389/photo/1
