Macquarie says Karoon worth $5.15 if oil > 100, page-309

valuation on Karoon:-

2023 production will be 30,000/bbls/day.
It’s profitability at $100/bbl is:-
royalty 10% =. $10/bbl
production costs $15/bbl
other costs. $5/bbl

pre tax profit. US $70/bbl

this equates to pre tax profit of US$740m pa or A$1,060m or $1.92/sh. The company has no debt and US$200m cash on the balance sheet to cover CAPEX on the Bauna intervention and Patola expansion.

Let’s put a conservative 3x pre tax multiple on this and we get to $5.76/sh. If oil pushes up to $115-130/bbl we push over $7/sh.

IMO it’s super cheap here and at $2.7/sh, $3.7/sh or $4.70/sh. Once management executes on the expansion the stock will start to move up thru these prices.