@SKM - I think what may have "spooked" some is that this article came out between VD's articles and as such may have be perceived as part of an orchestrated "pump".
@JM - The value in this article (for me) is that while I like to focus on peer metrics what this article does is look internally only to justify how it manifests value. There is no better explanation than the following:
" In the simplest terms, doing nothing but re-investing existing cash flows, they can be producing 7,000 boe/day just out of the existing Eagle Ford acreage with existing proved-undeveloped locations (again, completely ignoring any contribution from probables)."
Now this author uses the Strip pricing for his economics statement - so he is being conservative
"Basically, at around the 7,000 boe/day mark, this asset is throwing off $150mm in positive cash flows and, assuming a $25.00 DD&A charge, an $85mm contribution to EBITDAX. If you drill the 15 wells needed to just do maintenance of this production rate after that, you're looking at a total of around $86mm CapEx. Net result: $64mm pre-tax cash flows on average for about 6 years!"
You (JM) had questioned earlier whether LNR is still genuine value - and for me it remains so. I have been tempted to add more but haven't (only due to potential multiple "contraction" in a global sell off) but at present IMO it has a margin of safety that is superior to others (esp on ASX).
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@SKM - I think what may have "spooked" some is that this article...
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Last
0.3¢ |
Change
0.000(0.00%) |
Mkt cap ! $7.330M |
Open | High | Low | Value | Volume |
0.3¢ | 0.3¢ | 0.3¢ | $2.765K | 921.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
48 | 45605897 | 0.2¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.3¢ | 992314 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
48 | 45605897 | 0.002 |
18 | 67024077 | 0.001 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.003 | 992314 | 2 |
0.004 | 24138052 | 24 |
0.005 | 15312122 | 16 |
0.006 | 12335280 | 15 |
0.007 | 4985802 | 12 |
Last trade - 14.25pm 03/09/2024 (20 minute delay) ? |
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