Is Carbon Capture the Future of Oil?

"Whitecap is a net negative emissions emitter that has successfully emerged from the 2020 bloodbath as a stronger entity given the successful acquisitions of several companies at compelling valuations. Trading at 2.7x EV/CF at $70WTI in 2022 and a 29 per cent free cash flow yield I see them being able to meaningfully increase their dividend (3.5 per cent current yield) while modestly growing production and lowering debt (<1X D/CF). With a market cap of $2.7B it is relevant to most generalists and is a no-brainer midcap pick for new money entering the space. Using US$70WTI and a 6x target multiple I see the potential for 110 per cent upside." - Eric Nuttall

back

Is Carbon Capture the Future of Oil?

bullish

"Whitecap is a net negative emissions emitter that has successfully emerged from the 2020 bloodbath as a stronger entity given the successful acquisitions of several companies at compelling valuations. Trading at 2.7x EV/CF at $70WTI in 2022 and a 29 per cent free cash flow yield I see them being able to meaningfully increase their dividend (3.5 per cent current yield) while modestly growing production and lowering debt (<1X D/CF). With a market cap of $2.7B it is relevant to most generalists and is a no-brainer midcap pick for new money entering the space. Using US$70WTI and a 6x target multiple I see the potential for 110 per cent upside."

- Eric Nuttall

read-time
< 1 min
9.26
Target Price
8/ 10
Confidence
6-12 Months
Timeframe
catalyst icon
Earnings Release
catalyst icon
News
catalyst icon
SEC
Filing
catalyst icon
Sentiment
catalyst icon
Other Catalyst

Access the latest tools and discussion channels with an account

reddit-sentiment

Reddit Sentiment
Analysis

portfolio-balancer

Portfolio Balancer
with brokerages

sec-dashboard

SEC Dashboard
with NLP

*/}aiodd-ad
next