Perpetual gets a bad shake
Several months ago Perpetual Energy was trading at about $1.45 to $1.60 per share.Now it is trading at less that$1.00.It is slightly higher than Bankers Petroleum and Petrobank Energy.But Perpetual has tremenduous reserves.In 2012 Perpetual added 19.5 MMb.o.e of proved and probable reserves.It's production for the year was 7.4 MMb.o.e.NET dispositions through it's asset disposition program was only 11.3 MMb.o.e.
Capital spending for the year was $79.8 million and it got about $77 million for disposing of it's Elmford property alone .This asset disposal paid for it's entire capital expenditure program.
For the entire year proved and probable reserves deceased from 80 to 75 MMb.o.e..Oil and natural gas liquids went up to 14% of the total from 10%in 2011.Perpetual estimates that it's reserve is worth $1.84 a share discounted at 8%.At a more reasonable 4% their reserves are worth about $2.50 a share.
Perpetual does not yet have a positive free cash flow but it's reserves alone are worth about $2.50 a share.So Perpetual should not be trading at $1.00 a share.Perpetual is getting a bad deal.See my blog on Blogdaleup on Wordpress.
blogdaleupsome
Capital spending for the year was $79.8 million and it got about $77 million for disposing of it's Elmford property alone .This asset disposal paid for it's entire capital expenditure program.
For the entire year proved and probable reserves deceased from 80 to 75 MMb.o.e..Oil and natural gas liquids went up to 14% of the total from 10%in 2011.Perpetual estimates that it's reserve is worth $1.84 a share discounted at 8%.At a more reasonable 4% their reserves are worth about $2.50 a share.
Perpetual does not yet have a positive free cash flow but it's reserves alone are worth about $2.50 a share.So Perpetual should not be trading at $1.00 a share.Perpetual is getting a bad deal.See my blog on Blogdaleup on Wordpress.
blogdaleupsome
Comments
Post a Comment