Wentworth Resources in prime spot a1 Nov 2018 14:41
"It’s not often that AIM is home to a major supplier in a market seeing ‘ridiculous’ growth.
But with some confidence chief executive, Eskil Jersing can say that is where oil and gas junior Wentworth Resources Limited (LON:WEN) stands at present.
WATCH: Wentworth Resources' restructure allows 'easier execution of growth opportunities
Wentworth is now the number one supplier of gas for electricity in Tanzania from the Mnazi Bay field and demand is soaring.
New gas to power stations are ‘lining up to come onstream’, he says and that puts Wentworth in a fantastic position.
House broker Stifel agrees; “This is the number 1 marginal gas producer in a structurally growing energy market desperately short of gas.
“Even on our base case, the business can sustain production and generate average US$15-20mln pa of FCF [free cash flow] into the 2020s, against a current market cap of US$50mln.”
Even on the lower figure, a cash flow multiple of under four is low, anomalously so suggest Stifel.
“A 30% annual free cash flow yield across 2018-2020.”.......
https://www.proactiveinvestors.co.uk/companies/news/208313/wentworth-resources-in-prime-spot-as-demand-for-gas-in-tanzania-soars-208313.html
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