Value Microcaps Junior Energy

[dr_airtime]

CPG.TO/CPG **read all three of my posts**

Speak of the devil! Looked at CPG’s PR from Friday and here is the MASSIVE leverage inherent in CPG at these WTI levels (spot WTI is $46 as I write this).

“approximately $35 million of funds flow sensitivity for every US$1/bbl change in WTI”

“Excess cash flow of approximately $150 to $300 million expected in 2021 at US$45/bbl to US$50/bbl WTI with a target reinvestment ratio of less than 75 percent”

So if WTI goes up $5 and stays there CPG’s funds flow goes up by $150mm. That is about $30mm of funds flow per $1 WTI compared to their first comment.

(Didn’t check but remember CPG reports in USD so all numbers above are in USD. Welcome to the daily Canadian currency sense check!)

Friday News Release