Valuation Metrics
With the current downdraft in the stock price ($2.76 last time I checked this morning), the market cap has fallen to about $1.1 billion and market enterprise value (i.e.: market cap + debt - cash) now stands at approximately $1.4 billion. Based on annualized EBITDA from the most recent quarter, this means GTE is trading at a MEV/EBIDTA ratio of approximately 3x (very low in my estimation). And based on 2017 year-ending 2P reserves of 137 MMBOE, the stock trades at about $10 per 2P barrel (also very low in my estimation when one considers GTE's high per barrel netbacks). Of course, if one believes oil prices will continue to free fall, such lower valuation metrics can take on more reasonableness. The Company's best use of any excess liquidity at this time is arguably share buybacks. I would love to see an expansion of whatever level of buyback is currently authorized.