I get what you're saying, but the street has already spoken on RPL and it has said show me. The stock will likely trade between $2.35 - $2.50 until they are satisfied that the sustainability will be maintained. Management knows this going in, and I am confident that they will deliver on 25% or lower corporate declines with a little production suprise and synergy improvements on the purchased asset.


So, in the meantime, like you say.... Enjoy the monthly payment and let it play out. Also, when adjusting for positive incremental cash-flow from higher floating prices, you need to sub out the royalties. With the hedges where they are, my assumptions for cash-flow are around ~$35M per quarter. Capital appreciation going forward will be much more a function of closing the "yield gap" rather than the oil price. JMO's