I don't understand how you all evaluate NNN on flowing barrels.
Per Global Hunter in previous post: "We estimate that NiMin's proved producing assets, net of debt, are worth $1.40 per share, assuming $100K per flowing BOE.
If I use $100k per flowing barrel, and given that Nimin reported (11/11/11) "Record production of 1,154 barrels of oil equivalent ("Boe") per day in the third quarter", then by the way I look at it, I'll value the company on flowing barrels at $115.4M. If I use today's Yahoo numbers, NNN.to, at .74/sh, has a market cap of about $50M and an enterprise value about $83M. That would mean at $115.4M, NNN.to is worth about $1.22/sh. Okay, close enough to conclude that NNN.to is undervalued on $100k flowing barrel basis.
I just don't see $100k being the bogey. It seems to be much, much less than $100k in the buyouts and presentations I believe I've seen where flowing barrels are reported as an important factor (as opposed to npv values, or both). I'll have to look closer. The facts are the facts, and if you say you are selling properties (or wanting to sell properties) at $100k per flowing barrel, and if Global Hunter uses $100k, I guess it's now the industry number. I'll be more alert in my reading to confirm. Disconcerting to me, because it would mean that there are so many companies out there with oil/ngls production that the market undervalues, if flowing barrels is a significant criterion and if $100k is the number. |
