Anyone think this could have OK results with a speculative view for growth from here? So last year it had net bank debt of £4.7m and before then 2021 it was only £0.9m. The dividend payout was is under 40% and there is a pension deficit. The positives of cash conversion are however are strong and it is a punt but they are in the right sector at the right time so I have added with the dividend somewhat limiting a stagnant share price in 2023.
"I think it will be a big boost for I3E if they can get the ‘threat’ of future CAPEX spend in the North Sea off the table as well as reducing costs by ditching the operatorship of it. Let EOG have another 25% to carry it to production." Strongly agree with everything in Spikes post. As mentioned it is a hard asset to sell and the big players are not looking at extracting oil beyond 2050 so a sale could be to smaller mid-companies that would buy these assets at a knockdown rate and I3 Energy investors should accept this. Our N.Sea assets will not be producing until 2028 so extremely slow vs Canada. Canada also offers more gas which is a transition fuel.
I think I now know why we had been falling. I strongly wonder if there is a lack of growth that typically Miton trusts always look for. I appreciate the presentation had a dumb-down chart showing the growth side was higher than the dividend but is that true? If that is the case then the institutional investors buying Ithica or whatever are not looking for microcaps like us and never will.
The closest that I could think of like Abrdn Equity Income Trust (AEI) who invests in DEC (12% dividend but the market cap has equal debt so not as good) may still feel that I3 Energy are too small of a market cap.
This is who we are:
Market Cap £265m
Dividend 9.4%
P/E 4.5
Net Debt - 3.0 million (none).
I think the growth is with the highly volatile personal investors while we pick up the dividends. Remember there are not many oil funds and certainly this is too small to be an ETF.
How much does an easy tie-up cost?
Should rename this thread "Directors losses". We are getting to the point where the tiny dividend starting to get attractive. The company should now focus on dividend growth however high dividends are a negative for the directors and JPMorgan as they pay more TAX on it, however it will attract PI's.
I am on the call. Sell Serenity to Tain is the best case here to provide a cash buffer for Canada.
I am new to onshore wells like I3E and I believe the market is adding little value to the practice vs the majors who are not growing but self-liquidating into the future and out of oil beyound 2050. So you pretty much know what you're getting with the majors and there are no plans to spend on CAPAX but to simply return revenue to shareholders via dividends or for larger holders where dividends have tax implications the majors are doing buybacks so they can sell out. This is NOT a bad strategy for the majors. If you need a source of this claim you need to reed reports by these majors who imply this strategy indirectly. None of us looking to beyond 2050 (I don't think I will be alive*) but we can all appreciate the strategy of the majors. This leaves us an opportunity to pick stocks like I3E very cheap.
Would be a good time for positive news, please?
Is anyone here at this?
Looks like I got my PAF timing right but wished I added a bit more. I will do so over time. I don't think there are other dividend-paying, net cash, low P/E gold miners left and if there are any falling please let me know as I am only 6% gold and miners and wish to get to my target of 16%.
P. S. Gav in another thread where you invest in DEC, take a look at I3E.
Gav, I suspect you're looking to buy back in. Before you do consider diversifying into I3E giving you less of a divi but net cash.
I think the clue to the issue is by looking into BP and Shell and all the majors accounts and strategies regarding large-scale projects that span 25 years plus appraisal time. But the good news is a discovery will shoot the lights out before falling again.
LNG, Gas and heating specific decline today based on weather forecasts. Impacts others like DEC. It's lucky we have oil. I have added to I3 Energy.
Agree Tobin. For me I could do with a nice pie chart showing sector allocation as this is no longer an "Energy" holding what with plant nutrition and decarbonization as much as O&G. This makes it hard to value but oddly still attached to the oil price. Suppose I could create a pie chart myself. One to hold on to extreme weakness and it often has relatively short periods of that.
Regardless of the great performance driven by the sector, the discount is so wide any major holders wanting to make what can only be described as a massive gain will vote to wind up the company. I would simply increase the share buybacks and begs the question why are the buy backs not working.
Tom, just PI and MM setting a fair price based on the global gas price tanked today along with warm weather in the US forecast for the next few weeks. Some China news can swing things in the opposite direction.
If this is a hangover after a dividend then that should be fixed with more frequent payments. I would welcome this as would many.
Thanks again kenj. We basically need to take off 20% the quoted. Harsh. I was doing a comparison to some Brazilian shares but got wrongly confused as they are US-listed but based in Brazil and have taken a position in IBZL today on the Petrobas news I actually think is a good thing. Good to see the PAF price move up from its lows and technicals look a bit stronger.
Thanks all for your help. I went through all the recent presentations. So much has happened. Lovely.
"The only thing that is clear is the space between his ears !!!" Tony I take a small issue with this. You think that the higher the intelligence the better the person is at making investment calls. This is not the case. Are central bankers able to make the right calls on the economy? It is often the clever people who are so self-confident in themselves (typically men and I am a man) that fail.
Saying all that, small Canadian wells that can be spun up quickly is where the money is and not expensive offshore wells that have no future beyond 2050. Why 2050? Well if you look at the strategy of big oil companies it is all about extracting money from existing assets through buybacks and dividends and not developing many if any large oil projects that span over 25 years where there is no future. Gas may have a longer future. Whatever happens, I3E Canadian operations are incredible at this price and hope the share price does not rise because that then begs the question... is there anything better?
Before jumping in and saying NR303 is NOT needed for trading because I3E is listed in the UK, is the form still required to save any TAX on dividends? The AJBell form does not make this clear and I will send a message to them as well: https://www.ajbell.co.uk/faq/do-you-reclaim-withholding-tax-overseas-dividends