Vantage Drilling Company (VTG) is an oil drilling company that is trading at a 71.4% to 77.87% discount to its intrinsic value and has huge potential of appreciation of intrinsic value over the coming years.
Management expects to bring down their debt at a $200 million/year rate or $0.66 per share/year in 2014 and 2015. The free cash flow ("FCF") alone used to bring down debt is 37% of market cap a year.
Debt reduction together with the recent delivery of the drillship Tungsten Explorer and the expected delivery of Cobalt Explorer in August 2015 paves the way for a significant appreciation of intrinsic value in the coming years and the generation of positive free cash...
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