The Geer Tank Trucks, Inc. purchase and Heartland’s expanded exploration and production activities should enable UPDA to increase pro-forma revenues to $140 million in 2008 and $170-200 million in 2009.
CFUL
The Company’s trading business generated revenues approaching $12 million in the third quarter of 2007. Going forward, the acquisition of Geer Tank Trucks is likely to add approximately $50 million to annualized revenues. This acquisition, combined with the Company’s marketing and facility expansion initiatives, will likely push 2008 pro forma revenues to a $120 million range.
Multiplying our 2008 revenue estimate by the peer group 1.0 times Price/Sales multiple we derive a $120 million value for UPDA’s energy trading business.
UPDA’s value is the $157 million sum of the fair values of its oil and gas trading and exploration businesses. Also taking into account the Company’s 87% ownership interest in its largest subsidiaries, we derive a $0.16 price target for UPDA shares.
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remember that upda is making over 100 mio revenue per year at the moment. but cful will bring more through deliveries by rail(40,000-60,000 bbl per month)and trading with low sulfur diesel when the two new tanks in brownsville are ready to work.
AI
