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!)
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