Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
"future FCF too accurately when it's going to be damn nigh impossible unless you know how much they hedge, at what price, when for and what type of hedge it is? If people want to"
I think what we know now about hedging gives you much better range of FCF.
Not sure what more than average min/max price of hedge you need to know.
ENQ based on fundametals is very cheap so I am not reallly sure at this point you gain much by doing more than an basic estimate. What we in Sweden call servettkalkyl.
January.
If your opinon is that climate change is real and the cause is carbon footprint.
But the world do not care or are not able to live without oil even if will affect climate in a very bad way.
Then I think the price of oil shares should be the least of your worries.
Well played AB.
So Pelle if you calculation is correct people in Sweden where not allowed to participate.
But the OO was still calculated with the Swedish shares and went directly to AB.
What would have made more sense is that English shareholders would get bigger allocation.
Worse than I thought. I am sure this is not allowed, but who cares. UK seems a really good place to screw minor sharholders
without any problems.
You could argue that OPEC had a purpose during COVID pandemic since it was a very special situation. And in that situation it could make sense for price fixing for a limited period.
OPEC has existex for a long time though and I do not see how price cartels are good for economy or consumers.
OPEC is artifically keeping prices up. Which IMO increases and not reduces the boom bust cycle.
If OPEC did not exist oil prices would be much easier to predict. Now when prices are high production of oil that is not economic viable at real prices are started. And then when OPEC decides everybody needs a lesson we gut a bust cycle.
Anyway interesting to see defenders of controlling of prices by producers.
Is it only oil or do you believe there are other areas where producers should allowed to control prices with cartells?
Very interesting that there is so many on this forum that think free market for oil would be bad thing. Next you will say that communism is not so bad...
Reminds me of the saying "Show me the incentive and I will show you the result" or something like that.
To me hard to see how UAEs postion is not justified. They have untapped production that the want to sell.
And from my understanding they invested to be able to pruduce more.
Whar is stranger is thst OPEC alliance is exist. Better if they dissolved and let the market handle the price.
Northernmonkey.
No I could not have done what you say. Enquest had 4 months to inform the market that swedish investors would be excluded from the OO. It is really clowns running the show at Enquest.
Until yesterday I planned for this, i.e I had extra cash to be able to participate in OO.
So Enquest not only shafted me but double shafted me. And you really think this will go without action from anybody. I have reported it to Nasdaq, I assume this does not follow the rules for being listed in Stockholm.
They should just get come up with how to compensate Swedish investors. It is not a big amount of money but clearly destroys any kind of trust.
And how 4months is not enough time to prepare prospectous is beyond me. I even believe it is ok to have it in English.
Gkb
If you have the same company in regards of production and risk, but substantially lower debt I would consider it more valuable.
The market does not do that, can not see that this is AB fault. Having different view than the market is how profit.. and loose.
My main issue is that I have zero trust in leadership after they shafted swedish investors so easy with really bad excuses. If time was the issue they could have decided to do a compensation OO just for Swedish investors later.
@gkb Regarding production and risk I think you are spot on that Enquest is now basically in same position as 2019.
The difference is Brent price and that Enquest has completely different net debt.
Remind me what was the net debt after the RI?