https://bisoninterests.substack.com/p/diamondback-acquisition-of-endeavor?utm_campaign=email-half-post&r=1kbc12&utm_source=substack&utm_medium=email
Obviously you can't do an apples to apples comparison on all the names but interesting comments nevertheless.
Josh Young: Diamondback Acquisition and Implications for Vitel Energy (VTLE)
Re: Josh Young: Diamondback Acquisition and Implications for Vitel Energy (VTLE)
Nice to see a good energy sector analysts agree with me that VTLE has a lot of upside from where it is trading today.
"The pure math illustrates enormous upside on production and land values. There is so much upside that, even if Vital were heavily punished for less claimed drilling inventory and lower well productivity, there could still easily be well over 100% upside to the company in a sale. The discount is so extreme that there is a good argument that VTLE shares are materially undervalued even if the company remains public as a going concern."
My current valuation of VTLE is $100/share based on just 3.25 X annualized operating cash flow per share.
> Vital has already announced Q4 production of 113,400 Boepd (52,800 bopd, 28,600 bnglpd and 192,000 mcfpd of Ngas)
> You can find my detailed forecast for 2024 under the Sweet 16 tab on the EPG website.
PR, MTDR and VTLE are pure plays on the Permian Basis that are potential takeover targets.
"The pure math illustrates enormous upside on production and land values. There is so much upside that, even if Vital were heavily punished for less claimed drilling inventory and lower well productivity, there could still easily be well over 100% upside to the company in a sale. The discount is so extreme that there is a good argument that VTLE shares are materially undervalued even if the company remains public as a going concern."
My current valuation of VTLE is $100/share based on just 3.25 X annualized operating cash flow per share.
> Vital has already announced Q4 production of 113,400 Boepd (52,800 bopd, 28,600 bnglpd and 192,000 mcfpd of Ngas)
> You can find my detailed forecast for 2024 under the Sweet 16 tab on the EPG website.
PR, MTDR and VTLE are pure plays on the Permian Basis that are potential takeover targets.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group