Trump Don't confuse the old guy. Give him time. He is still trying to work out how long he has been on this BB in response to my question. It would be much simpler if there were only 12 months in a year.
I don't have a problem. I'm reasonably happy with Range at the moment and irrespective of what you spout I have a degree of confidence in the management and T&T. You however keep reminding me of the actor David Niven's autobiography "Bring on the empty horses" He and Errol Flynn are making a film of the Charge of the Light Brigade with a Polish Director who had a limited knowledge of English. Niven and Flynn are taking the **** and the Director lost his temper and shouted at them. You are very smart. You think I know f*** nothing when in fact I know f*** all. I think that sums you up quite nicely.
Where does it say that they are doing another analyst trip ? What was the result of the last one ? Why don't the analysts that RRL currently pay produce a valuation / target price ? They keep saying under review, because their methodology would say that the SP is above target. The analyst trip will be beneficial for Land Ocean. Malcy is an irrelevance, he's paid to say what he does. Hoe does he earn his money?
The accounts will always show that future oil revenues are needed to repay debts, leaving limited free cash flow. Remember LO announcing the contract was worth $400M over 8 years.
As RRL have said this week, depletion is so high the dependency on water-flood is significant for cross subsidy of conventional drilling costs.
Touchstone, who are probably the best land based operator on Trinidad are a good example of the real costs of drilling on the Island, hence their low MCap.
LO are already publishing the revenues they are generating from RRL as they have to produce a balance sheet every quarter and revenues are recognised. RRL are only required to do so every 6 months. I suspect many are matching the two as LO is so dominant in RRL, albeit there is a weak attempt to hide this by referring to them as Range Resources Drilling Services.
RRL’s accounts later this year will show a significant fall in NAV as the liabilities will have to be shown, with no corresponding revenue and the value of reserves based on under $50. I suspect that shrewd investors will not buy at higher than the NAV per share as this is a production company with limited upside, rather than an exploration company such as FRR.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.