Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Next week should be the conclusion of GE.. I noticed almost 100% of turnover (oil sales) were specified going to China.. at very cheap price in Q1 2021..
Romaron, I agree with you AB done a good job after topping up the debt to 2b+.
Since that worked it down 1b over couple years and buying Magnus and GE cheap and good timing specially GE.
And I assume he will do very well with the cards he got now. Those cards looks stronger then ever.
Tarmak, I haven't sold a single share, last trade I done was back in September when I bought 2 x £20k worth.
Get GE over the line and I will relax
Hi!
Ko,
You sold out again?
If the price of the share shall normalize against the FCF it will go up, imo high.
How high is depending on the level of divi.
Regards/Kamrat
Mriggy, in April debt/EBITDA will be 800/1000m = 0,8
multiple. Last 12 month EBITDA when we in April.
Enquest stated before they want to operate around 1 multiple. So well within target.
And falling very quickly end 2022 multiple 0.3
I don't see any evidence that AB is ready to consider a dividend or a share buy back program after debts are reduced.
He seems much more likely to borrow more to develop Bressay and Bentley or buy more assets.
I think for AB, Enquest is still a growth company and will continue to be so for some time yet, remember he is only 56 years old.
I guess he will probably only think about share holder value when he is ready to retire or move on.
Pelle What Do you mean by this
” Debt close to 800m and 12m backward EBITDA close to 1b” , What Do you mean by 12m backward ebitda close to 1b?
I estimate we will make a nice dent on the debt over next 6 months 400m FCF.
Debt close to 800m and 12m backward EBITDA close to 1b. Refinancing the bonds.
We are a long way off any shareholder return, no point in talking about it until Enquest give a plan on how all this FCF will be used. We need another 12-18 months with Brent at $80 to make a nice dent in our debt pile.
1.5p per month Increase to the SP is fine by me. But with FCF around $50month is that enough ?
Hi Romaron, Thanks for the answer. Those are some company specific conitions that we know exist. Do we know more details?
Are there any more general conditions for a oil company before they legally can perform a share buy backs program? I mean our fcf is/will be huge in comparison to the company market value and daily turn over in the stock, meaning the buy backs programe could make the stock price sky rocket, would this even be legal for enq to buy directly in the market with regards to those aspects?
There are covenants preventing both at present Mriggy but our situation is improving so quickly that they cannot be far away. AB plays them down to a point because a lot of shareholders behave like children with a whine "but you promised". He says only what a responsible CEO would say but there is a growing demand across the whole sector to reward shareholders and that is something he cannot ignore. All oil companies will soon be judged by shareholder returns in the next few years imo.
Not the exact answer you want but others here will have the relevant covenants to hand. Obviously put in place by our creditors who want comfort that the money lent isn't an IN OUT gift that more unscrupulous companies have been known for. Once the debt is at a certain level the limiter is released.
Can anyone shed some light on share buy backs. What are the conditions for Enquest launching such a share buy back program? Does anyone here have general knowledge regarding that and also specific knowledge with regards to Enquest?
I make you right Pelle. All the data and reporting agrees that all in the EMP Regime are undervalued but it is what it is. EnQuest is at the top of the leader board for share performance in some tables and it depends on what measures you're using but many have fallen by the wayside or are in a zombie state.
Using Aramco who have been going barely a year and certainly won't be running out of reserves anytime soon. They're up 17% since their IPO. Using the same time scale - BP + 29%, Shell +35% CNE - 3%, TLW + 59%, HBR -10% and ENQ with +115%.
I cannot understand HBR being negative or why BP & Shell with the money spent on ESG promotion and paying dividends don't head the leader boards.
Those calling for AB's head are hardly the most consistent posters and are day traders or trolls who clearly have poor timing or are currently short. Who do they imagine could do it better? (I hear Steve Bruce is available).
Unfortunately we are in the same mix and it is unlikely to change soon. We have a few projects and situation that could set our price alight but I'm afraid that our recovery may well be slower than most hope for but it is coming and may well speed up for us as we are much more nimble and will soon be able to afford dividend if the macro doesn't change too much.
I'm quite happy to accept a mix of dividends and buybacks in the future with the share price losing its relevancy. It'll be the same result. You cannot ignore FCF and our tax situation couldn't be much better. Sentiment does change and technology works both ways. Production and revenue up - emissions down. Still not good enough for some but the real world is like that. You have to play the hand your dealt.
Build it and they will come.