-Why are you assuming a free carry on all current and future leases? Agree that they will farm out a portion - but have they stated anything about a complete free carry? Appreciate the sentiment, but feels like you've taken it a step too far.
-How are you ascribing a P/E of 10-20 when they have 8 years of oil? Why not a discounted value based upon 8 years of income/reserves? Feels like you are factoring in undiscovered upside for anything over a P/E of about 4-5.
Agree that it is a fantastic stock, but I'd say the price is about right at the moment - to the point that it is already factoring in upside of farm outs on attractive terms.
BYE Price at posting:
39.0¢ Sentiment: None Disclosure: Not Held
