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No time would be a right time for some .m with whatcangowrong we can kick right on .
We're now already a Empire. Market will soon see the benefit
This REALLY is a bad timing. They should focus on bringing Cascadura to 200 mmcf. Then this would be a 4-5% dillutive trade, not a 20%
It's demoralising.
PB would rather build empires with a 20 year timeframe instead of building shareholder value now?
Hold on to our hats on this one. Looks like people panic selling. This should come back once they realise the deal is smart from running a company.
Equipment all in one location.
People all in one location.
Management team synergies.
Tax loss utilisation.
Both undervalued currently
On paper May look like a dilution for TXP but in reality this brings significant positives.
I like the look of this deal - TXP has a huge foothold in Trinidad off the back of the deal and appears grossly undervalued IMO!
I wonder if there is any RNS that TXP could release to which the market doesn't respond negatively? Bloody ridiculous.
Ol well....I'm sure PB has a masterplan somewhere in his locker.
I own 2.6% of Trinity and will be taking a 50% loss on my investment by accepting this offer (which at least is better than the 75% loss I’m currently sitting on). However, it seems to me that the expanded Touchstone should quickly see its share price double: it can use the tax losses, there’s plenty of room for cost cutting (just getting rid of Trinity’s senior management will save over $1 million per year; the CE alone has been picking up $500,000 or so), and the increased cash flow will drive investment.
Add in $16m EBITDA and 13mbo 2P to the mix, coupled with highlandmatts other observations.
It does appear to be a good deal, even with the premium they’ve picked the assets up cheaply and TRIN will be in favour of this due to synergies, efficiencies of scale via cost reductions at an operational level and a huge upside potential via TXPs existing assets.
When you're buying something at a 72 premium while your own SP is 50% underrated and you're paying with shares... who's the real winner?
TRIN produces 2,600-2,700 bopd, its Net Cash position is $9.7m when taking in to account the $5.1m VAT receipts due.
It's share price is bargain basement due to the poor performance of management, it should be many multiples higher. Obviously once acquired you remove that downside of poor management. There's then the sizeable tax losses Ab mentions and the shallow water Galeota development, which is in middle of a revised concept study and was working to FID in 2024. The original concept was for "Echo phase 1" to produce 4,000bopd and Foxtrot/Golf Phase 2 to produce combined 7,000bopd.
Combined 2P Reserves and 2C Resources end of 2023 at 51.58mmstb.
As much of a kick in the teeth this notional price is to TRIN holders, based on its current share price it's very good deal for both parties.
Trinity is spending millions per year on five non-executive directors and two director executives (https://trinityexploration.com/about-us/board-of-directors/) and a chief operating officer and five other senior managers (https://trinityexploration.com/about-us/executive-management-team/). That cost will be quickly cut, adding to the bottom line.
This appears a good deal for both parties and then savings on the Senior Management Team. This will create some significant synergies here, so should be seen very favourably.
Https://www.lse.co.uk/rns/q1-2024-operational-update-1l0aa1srgo2so7m.html
TRIN producing 2,500 bopd, $8.6m cash, $4m overdraft, $5m VAT reclaim. Not terrible for $26m.
Firstly at 61.9p I don’t think that’s too rich. Pheeew!
But if I wanted trinity I’d have bought their stock!
It does though show our robust revs will amortise the acquisition comfortably.
Other than that I have to look through here and TRIN RNS’s later in more detail.
Usual caveats
Trek