Veren Inc T.VRN

BMO

[retiredcf]

BMO analyst Jeremy McCrea has a novel method for uncovering value in the domestic oil patch,

“Each year, the best-performing E&P stocks are typically those that had a large multiple expansion. When we discuss multiples, we are referencing an EV/ PDP (Proved Developed Producing) ratio, which essentially describes what an investor believes a company’s undrilled inventory/land is worth (taking a company’s EV less PDP). By looking at only this undrilled land value, we can isolate a key component of a company’s EV and the most arbitrary value from a consensus/investor point of view. The change in ‘perception’ of how investors view/value this undrilled land is historically one of the bigger drivers for multiple change. The best/notable wells each month give an early indication of where this multiple could be changing … Veren (Montney): Veren continues to see strong performance from its 4-well West Gold Creek Montney pad … Baytex (Duvernay): We have seen some impressive Duvernay wells from Paramount lately and based on some technical debriefs, this geological fairway looks to continue up into BTE’s Duvernay land … Obsidian (Bluesky): The “waffle design” wells continue to flow strongly and rank in the top 5 of industry ‘bitumen’ wells - a rather difficult achievement … Surge (Frobisher): Surge continues to show very strong Frobisher wells, with the most recent well topping our chart - the 3-3 well producing an astonishing 633 bbls/d over 31 days. We also highlight Rubellite, Headwater, and Advantage”

[Anschutz]

LOL... pre-emptive damage control by BMO to try and temper the anger from clients who got suckered into the bought deal they brokered. Will be interesting to see how hard they pump the share price now that they've moved the bulk off their books and into client accounts.

[Moemoney42]

Looks like they'll have to "pump" the whole sector today..!!  :-( Its a fuggly day right across the board..!!  Storage levels down.. Greek tankers on fire.. missles flying and yet the price drops..?? Its a strange, strange world we live in master Jack..