RE: Value1 Nov 2021 12:30
Hi tessklee
Not sure what 35 means in your calcs, guess the fcf for each barrel. 200k i recognise as the number of boe (not just gas).
So taking your numbers as a starting point then the value should be 200k x 35 x 365 = 2.555.
Say the expected average life of the producing assets is 10 years and the risk discount rate to value the company (which is optimistic, so my calculations are prudent) say is 10%, then the value is 17.5. I guess your 35 is in dollars, so say 12.5 gbp is value of hbr which includes value of debt of c3b say. The market value should be around 10b or 10 quid which is 50p old money and we know in aug 2020 it was 60p in post pandemic world. So 10 quid share price isn't unreasonable. However there are alot of variables need to be allowed for - forward curves of oil prices, hedging, expected future opex, capex, actual lifespan of assets, decommissioning costs etc. But should easily be over 3.5b it's worth today. DYOR.