Genel Energy Share Price (GENL)

Added more today, over half way now to the required 50,000

A wee dittyToday 09:31
Just a wee analysis - with no real basis - but thoughts on a postcard.

Genel & GKP are both very undervalued in this and any market place with great discount being applied due to the political situation (but please tell me where in the world do we have cheap oil and political stability hand in hand - money breeds !!!!). However, I always thought Genel was even more undervalued than GKP with their erosion in share price in comparison to GKP - but are my thoughts correct ?

However let’s look at Genel purely on a value per barrel oil produced.

Value £385m production 30-31,000bpd (take 30,500), just assume production of 365 days - would set a value of Genel @£34.6 per barrel produced in the year. Now let’s look at GKP.

Value £517m production 44,900bpd again assume 365 days - this would set a value for GKP @£31.5 per barrel produced, so in reality GKP are 10% undervalued based on production compared with Genel.

However, how undervalued are we really, let’s look at SHELL again simply no reserves or where being pumped from or liabilities (ps SHELL like all majors have BIG liabilities), purely on production.

Value £168bn production 3.6mBPD, so again 365 days this would value Shell at £127 per barrel produced.

So the big question is why does GKP and Genel share price get discounted 75% on value of oil produced to that of SHELL who operate in very stable political countries - NOT.

Ps I hold GKP and Genel so wish them both to realise their true value gla

Never seen the disconnect so large.... Lots of catching up to do here.

When a company has a market cap that is less than or similar to 2 years FCF you know that it’s a serious case of undervaluation. And this is very serious!

Remember they only get 25 percent of tawke so maybe an extra 1000 bopd. Still a lot of cash but not worth changing guidance over .