InPlay Oil (IPOOF) Update - April 15

Post Reply
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

InPlay Oil (IPOOF) Update - April 15

Post by dan_s »

I thought Doug did a great job on today's webinar. Prior to going live we did talk about InPlay's realized liquids prices and I believe the prices I'm using in my forecast/valuation model are reasonable. Remember, my model is in Canadian dollars and I convert the stock valuation to U.S. dollars at a differential of 0.79.

A link to the replay of today's webinar is now up on the EPG Home Page.

My valuation is at the low end to the Company's Adjusted Free Cash Flow estimate $16 to $19 Cdn million.

This stock is currently trading below 1X operating cash flow per share.

First Call's' price target was recently raised from $0.87 to $1.02 Cdn for IPO.TO. My valuation is $1.39Cdn today, but it will be going up after they release Q1 results because I will drop 2020 CFPS from the valuation equation.

InPlay will report Q1 results mid-May. Production will increase from ~4,800 Boepd in Q1 to ~5,200 Boepd in Q2 because of the 3 really good wells completed in March.

Note that there is zero in my current valuation for the Duvernay Shale Play that has HUGE potential upside for a company of this size.
Dan Steffens
Energy Prospectus Group
Post Reply