PYX Resources: Achieving volume and diversification milestones. Watch the video here.
Good morning, anyone hazard a guess of the latest cash / asset position?
What's the company's cash position? Thanks
Getting silly here now....
Obviously near the bottom. And I've seen the supposed BlackRock article and it's absolute nonsense.
No they'll do it all for you. Sit back and watch the payments roll in !!
See Bloomberg article Newkotb
https://www.bloomberg.com/news/articles/2021-10-26/russia-wants-gas-price-60-lower-to-keep-energy-grip-on-europe
Putin is worried high gas price will stimulate green economy and gas will lose market share more quickly. Apparently around 80p p/therm is the sweet spot and target..which would certainly be fine with sqz long term!
*Factor that in!!
Simple fact is gas is down 12.3% to 191.7p p/therm.
If Putin follows through on his promise to increase flow into Europe from 8 November without any significant cold in the forecast for Europe for the forseeable, we could easily see gas back to 100p p/therm.
Also signs gas storage is increasing in Europe with higher wind and mild temperatures.
Fact that in and you can see why some have taken profit.
That's not normally how it works...
Many thanks
How big is the short position here? Thanks
Morning, just passing through and wondered what divi yield the company has at current valuation? Thanks
Interesting they never mentioned current cash position as from memory they normally do? Maybe it's an attempt to keep the profile of NS oil and gas under the radar of National government and those eager to see tax grabs.....I think we would have seen an interim dividend without this jaw boning from those in Westminster who don't understand market economics and the requirement of future investment from these companies to ensure we don't end up in these energy crisis situations in the future.
As ever with interim and final results, they are simply a delayed snap shot of where the company was between 3-6 months back. Fundamentals moving forward are simply mouth watering, even after gas settles back below 100p/therm, which inevitably it will. As for hedging, I'm with you on this and fail to fully understand the strategy rationale currently, however the oil and gas industry is a volatile game and I think the 20% hedge is seen as an insurance policy and is prudent governance.
What investors need to consider here is at what price will cash overtake the current market cap? Possibility is late 2022 or certainly 2023. This cash generation will require a significant rerate of the business valuation to circa £1bn minimum next year providing the wider markets don't collapse. This kind of capital will make SQZ a king pin of the North Sea and likely to lead to further significant acquisitions as and when the macro situation allows. This business strategy and execution has been and will continue to see significant shareholder returns.
Loving the way so called investors appear on results day to try and pick holes in what is an excellent set of results. Capex now substantially Complete, essential maintenance undertaken, production forecast for 2022 of circa 30,000 boepd.
Could they have timed these developments any better? Current gas price circa $158 boepd.
Plug 30,000 boepd into projections of following net back figures for 2022. (Remember capex in 2022 will be minimal)
$50 net back equals $547m
$60 net back equals $657m
$70 net back equals $767m
If we consider current opex is $15 pboe and current gross income pboe is:
Current gas $150 pboe for 60%
Current oil $80 for 20%
Current hedge at $32 for 20%
Current turnover pboe after hedging and condensate consideration is circa $113 pboe. Post opex we have current net back of circa $98 pboe.
The investment case here is incredible.....
This isn't considering likely cash position approsching £200m at year end.
Asked again whether the government has considered or ruled out a windfall tax, Kwarteng says: "I am not a fan of windfall taxes, let me just get that straight, but of course it's an entire system and we have to think about how we can get the system as a whole to help itself."
What's the company cash position and cost of drill? Thanks
This is a £1bn market cap company in the making next year. How quickly it gets there will be determined by Boards policy on shareholder redemption. Think we'll see an interim dividend introduced but what I'd really like to see is a buy back programme to remove stale investors. I know Mitch reads these boards so I think it's time to at least state that the company is at least considering this policy in upcoming interims
Is that job done? any final stages before production you think? Thanks in advance
Any one checked to see if Tony has done any dealings with these guys in the past.!!???