RE: Hedges all good.8 Feb 2022 10:41
Exactly .... too many idiots on here with short positions, short term memories or no clue. Hedging saved this company and Tullow is not a get rich quick ponzi scheme. It's now a very undervalued company with great potential. For those who're prepared to hold there's great returns to look forward too.
1) With the energy boom finding a strategic partner in Kenya is only a matter of time now.
2) New drills in Ghana will up production year on year.
3) An exploratory drill in the new oil frontier of Guyana could produce a major discovery.
4) A refinance to better terms, possibly without so much hedging, could be a real possibility and Rahul did allude to refinancing in the last presentation.
5) The Uganda FID payment cheque is in the post and in 2025 Tullow will get a small percentage payment of the 240,000 barrels of oil per day extracted. At the current oil price of $90 that would be 2.5% (net of tax), so worth over $500k a day to Tullow or almost $200 million a year. To put that into perspective, that's nearly a quarter of the current market cap.
6) There's over 3% shorts on this company and I don't think one of them is currently in profit, at some point they will need to cut their losses and move on.
Just a game of patience now. GLA