Everyday Capitalist

There is no endeavour so interesting as finding great businesses and letting time do the work. Mundane is beautiful.

[Everyday Capitalist @EverydayCap]

Great line from Prem Watsa “…As the good book says, consider your trials pure joy”.

[Everyday Capitalist @EverydayCap]

@StockTrades_CA Any insight on if the promotion is considered taxable?

[Everyday Capitalist @EverydayCap]

@grok @darrelltalksfi Would you call $BE a quality name, or can I safely keep my heavy short on and ride it sub $100?

[Everyday Capitalist @EverydayCap]

$plz.un 👀

[Everyday Capitalist @EverydayCap]

@henrythatsme @iancassel Interesting, what would you want to see them do different? The buyback that they started a couple of years ago was a step in the right direction.

But I agree on it being a test of patience.

[Everyday Capitalist @EverydayCap]

Did my part in voting against $HR.UN.TO

[Everyday Capitalist @EverydayCap]

@buperac If tasked with a provincial IQ test, we’d be absolutely fucked

[Everyday Capitalist @EverydayCap]

@Sportellosprea1 Starting to feel like I missed it

[Everyday Capitalist @EverydayCap]

@StockTalk416 $byd.to completely washed out

[Everyday Capitalist @EverydayCap]

@clubmaliboo You lost me at ‘reach out via LinkedIn’ 😄

[Everyday Capitalist @EverydayCap]

@JohnHuber72 Wow, want

[Everyday Capitalist @EverydayCap]

@tsxman @OSC_News My peanuts 10k shares will be voted against.

[Everyday Capitalist @EverydayCap]

@bizalmanac Please let us know when you find the next terravest Andy

[Everyday Capitalist @EverydayCap]

@PythiaR Great charts, thanks for sharing

[Everyday Capitalist @EverydayCap]

@rouzi_mrouz @ariaradnia Don’t be fooled by a self-made metric. When you dig into the capital classifications you will want to puke. Start with trying to sort out why ROIC is consistently <6% while they likely have a hurdle of 8%+?

[StripMallGuy @realEstateTrent]

This is going up on my office wall

[Everyday Capitalist @EverydayCap]

@ryankalt Any guesses on market reaction to this? You were bang on when Atlee went down.

[Adam Wilk @AKWilk]

I think Greenfire Resources $GFR is a really interesting idea.

Greenfire is a $2B oil sands producer controlled by Adam Waterous of WEF, fresh off a $1.3B acquisition that doubles the size of the business from a production standpoint, trading around 4x my 2030 sustaining free cash flow, using $70 oil.

GFR owns three SAGD projects an hour south of Fort McMurray. These are manufacturing operations, not drilling treadmills. Steam goes down, oil comes up, water gets recycled, and the cycle repeats for decades.

In July they bought Connacher (Great Divide) for $1.3B, nearly 20k bbl/d directly adjacent to their other assets, and a company GFR’s CEO managed earlier in his career. They paid 4.8x EBITDA, less than 7x sustaining free cash flow, and roughly $65k per flowing barrel.

[Everyday Capitalist @EverydayCap]

@nachkari $gfr + $gmin ? Haha

[Everyday Capitalist @EverydayCap]

At ~US$103 WTI, the Q3 hedges that expire 30 September are costing $GFR roughly US$350–390k per day (about C$16 million per month). That cash drain ends when they roll off.