Make them pay!, page-246

I may have way too much time on my hands during this Covid19 period but at least it allows for some interesting analysis. I'm a subscriber to Morningstar and am reviewing Santos. MS has a valuation of $10.30 per share on STO with 12% of this attributed to Dorado ie $1.24. With around 2bn STO shares on issue this translates to a value of $2.48bn for STO's share of Dorado. Santo's stake is 80% of Dorado so that translates into CVN's share (20%) being worth $620m. With CVN having around 1.5bn shares on issue that values CVN's share of Dorado at $0.41 per share. And that excludes value of Pavo, APUS etc.

At the current SP of $0.21 CVN seems a great buy but also note STO SP of around $5.35 is trading at around 50% of MS valuation. There is a lot of blue sky in both companies but I'm resigned to accepting fossil fuel companies are a tad on the nose. Like WPL where MS have a valuation SP at around $35 and is trading around $22. An interesting theme in all 3 companies.

Please advise if there are any errors in this analysis.