Hi VP;
The $.28 cents is an extrapolation for the current year based on first quarter cash flow.Of course several variables need to remain fairly constant for this to be somewhat accurate..i.e. production levels, oil an gas prices, share float, etc.
However, we can make the argument that this projected figure could even be better i.e.increased production before year end is a given, the price of oil and gas will most likely settle at current levels....although gas prices appear to be heading higher from here,we most likely will not be seeing an equity offering anytime soon, etc. etc.
VP, once investors begin crowding into this sector, look for more healthy multiples for these companies, especially juniors with these levels of production, and such strong balance sheets.The beauty about Gentry is that no matter which way the price of oil moves, the company will be a winner:If the price of oil drops, Gentry, with its strong cash position will be in the position to buy further production(corporate acquisitions); if these O & G prices continue to rise or base here, look for increased production from the drill bit.
I trust that this addresses your question.
Regards,
Len |
