If CVI earned the margins Caltex make, they would earn 2.5 cents EPS.
100,000 barrels a day at $10 profit a barrel (current Caltex margin) = $350M annual EBITDA for the refinery. CVI will receive $21M EBITDA or 2.5 cents EPS.
However, it is the off-shore and on-shore oil that has the huge upside.
The major players in Angola are producing rates such as 700000 barrels a day.
They why we are holding, hoping CVI leases are as productive or similar.
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
