So I thought I'd pen a story fairy tale ... this is NOT my view...

So I thought I'd pen a story fairy tale ... this is NOT my view of the value of COE though.

What if COE stopped all further exploration and drilling of new wells and just produced what they currently from just Sole and C-H. Additionally they sell everything else unrelated and are Net Debt = $0

Here is the simplest DCF I can come up ... using 5 years of production at ASP of $9/GJ, EBITDA margin of 50, and a terminal value based on 2-4X Rev ..(US E&P avg is 2.97).

Here is that model and what the market may be missing. The "undervaluation" is clearly the market not believing that COE delivers on the volume and/or ASP (GSAs).

Keep in mind this is just the PV of the FV of what COE receives from operating its present gas assets.