RE: Nothing till December11 Nov 2021 17:10
My issue is this, to me Echo looks little different to Callon Petroleum (CPE) in Oct 2020, when it was trading around $3.5 a share (now $40+). The story was the same, production increasing in many places at the same time the price of oil and gas has risen to a high rate not seen in 4-5 years. I accept its not the $124 levels seen in 07' but its still higher then we have had in years and much higher then last year. I would like this to go up before any market crashes.
What annoys me is more Mr Hull does not set out what the breakeven prices are on oil and gas at Echo. My maths makes it clear if production is higher then the December 2020 revenue and the cost of oil and gas very high, with all things staying the same, then this company should be making 50-100% more than last year. It should definitely be in profit of at least £5-10 million.
I am just wondering why they are taking so long to come out with the positive news in the form of stats and not just positive rhetoric, that I can break down. I picked this as my first company to post on because all my other stock picks have risen 100-1000% in the past year, only echo continues to sit in this price accumulation range. I have all my positions at the price I want so now I would like it to go up.
I just assume it is guarenteed we get the balance sheet on the 31 December 2021 as thats the date we got it last year. I have no idea when they plan to give us news on the other wells they have opened.
The average p/e ratio on oil stocks is 16, assuming our profits end up being the near same price as the stocks we should get at least a p/e of 4, so 3-4x todays price. Ah just a bit annoying having to wait thats all.
I know they are turning on more wells, hope they pay off some debt unless the plan is to allow high inflation to wipe out the value of the coupons in 2 years.