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April LTIP RNS: "following this award Katherine will have options over a total of 9,328,899 shares in Wentworth".
They will all vest now... She will absolutely love this take over!! Thrilled to bits, extremely pleased and happy with herself! Time to go to the Landrover dealer....
Gazelleman,
In reality, I expect cash to be flat or even drop a little the next couple a months (WEN has to pay ~20 mln for the compression project the next two years) and NPV should be lower as well, given that the numbers are from 31.12.2021.
I would expect a total value (cash + 2P NPV) of 120-140 mln US$ by mid next year. You can argue though that NPV should be taken at a zero % discount rate, given that the company doesn't have to borrow money for CAPEX investments. In that case, total value goes up another 40 mln, so total value would be 160-180 mln.
75 mln takeover price is a steal in any case. Shareholders got screwed hard and long by management, and now again for the final time...
- 30.2 million US$ in cash
- 136 mln US$ 2P NPV (5%, after tax)
Sold for 75 mln US$.
What a sad, sad deal.... such a disgrace. I can't even stomach watching the usual driver from our beloved CEO..
"In accordance with the terms of the LTIP, as a result of the Acquisition, all awards made under the LTIP will vest to the extent determined by Wentworth's remuneration committee"
Probably the main driver for selling the company so cheaply...
LOL.... that's a good one Blackgold! Sink my money in an unproven, overhyped project that relies on the Tanzanian government to build a pipeline and is years away from monetization... Love it! :-)
Disappointing price, but ultimately I'm happy to get out. Wentworth's management has been absolutely useless. After years of squandering huge sums of money while failing to achieve anything at all, this is probably the best we can expect. Management never worked in the interest of its shareholders. A common problem unfortunately, on AIM.
A 2nd RNS is out today, just to declare the total voting rights.....
I don't see a change, so what's the point of the RNS?
https://irpages2.eqs.com/websites/genel/English/1720/uk-news.html?airportNewsID=23226e5e-5986-4aaf-87e1-0bad99aec797
Certainly good news. With net cash at 141 mln (H1 2022) and 2P reserves of ~100 mln barrels , GENL remains a screaming buy in my view. A more realistic price would be around 3 pounds, and that still assumes a margin of just 20$/bbl (currently 32 $/bbl) and a remaining 50% discount to NAV. And forgetting about Morocco and Somaliland even.
Does anybody know why the RNS's don't show up here on LSE?
All payments have now been received from the Kurdistan Regional Government (‘KRG’) relating to oil sales during July 2022. (totalling 54.2 mln).
https://genelenergy.com/wp-content/uploads/2020/09/Genel-Receipt-of-payments-for-KRI-oil-sales-June-FINAL.pdf
Jim,
No doubt the long-term holders had a miserable time the last few years. I'm a long-term holder myself in a different O&G company (listed on AIM), and I'm exactly in the same position there.
Having said that: I think the picture is now indeed pretty rosy and while I agree that there is a risk factor, I think that in reality the situation in Northern Iraq is actually pretty stable now. KRG must be cash rich as well by now, so I don't expect too many problems in the next few years. Time will tell though. Good luck all!
" We are focused on putting this cash to work to purchase new assets, grow the business, and increase shareholder
returns".
I still read that as a "progressive" dividend policy.
Genel is ultimately in the harvesting phase in my view. There's little need to do anything at all at the moment, except o course making sure that invoices get pad. G&A is acceptable at 14 mln/year, so management is doing exactly what they need to do..... milk a cashcow and reward the shareholders!
I don't get this negativity. Net cash on 30 Sept is worth about 57p per share (181 mln US$). Net 2P reserves were 104 mln barrels at the end of 2021 (see 2021 annual report). Asuming a worst case scenario, where Genel recovers only half of those 2P volumes (50mln) and a margin of only 15 $/bbl (currently 36 $/bl), this company is worth about 267 pence per share.... With very significant upside in the current assets that is, and forgetting about Morocco and Somaliland.
What is your problem…. I think the news is very good. Building towards a cash balance of 500 mln by the end of the year. More dividends… Pretty amazing for a company with a market cap of ~ 400 mln.
https://genelenergy.com/wp-content/uploads/2020/09/Genel-Trading-and-Operations-Update-Nov-2022-FINAL.pdf
Not sure if this was posted before already. Here's a link to an interview with Michael Hohbein, held on 6 October during the "Africa Oil week".
Drilling in Somaliland will be "towards the end of 2023".....
https://www.brrmedia.co.uk/broadcasts-embed/63404cb0aa73507ed49958fd/?popup=true
Thanks Roofer,
That override is worth a lot (38 mln, according to the RNS), so I wonder what "suspended" means. Hopefully it means "deferred".
In any case, they have received a lot of money again, so great news! Time for a special dividend perhaps? :-)
" Genel was owed $120 million, excluding interest, for deferred receivables from the KRG for oil sales from November 2019 to February 2020, and has now received $117 million. In addition, the override was suspended from March to December 2020, which would have earned Genel $38 million"
Sounds great, but what is this override thing? Why was it suspended?
Thanks JC,
WIth the CEO issue behind us and the late payment problem resolved (and therefore not an issue for the next 12 months or so), I think Genel's situation has improved drastically. The geopolitical issue will remain forever I think, but at the same time, I don't see the de-facto status quo between KRG and the Iraq government changing.
I'm not yet convinced though that the Somaliland discovery is genuine. It looks a little too controlled for me (it certainly doesn't look like a blow-out). If there was a small oil "vein" close to surface you should see oil traces/spills everywhere in the area. Time will tell. Somaliland remains an attractive exploration target so I only see it as further upside.
Cheers and good luck!
Net profit = 126.1 mln in H1 2022 (1/3 of market cap)
cash = 412 mln on 30 June (114% of market cap)
net cash = 141 mln
A potential discovery
Dividend yield of ~9%
Wow... it certainly can be a lot worse!
I'm new to Genel, so am I missing something? Why is the price so low?