Member Info for SlickMongoose

Thanks also/

Montecristo, do you have a link to the article pleasE?

Still think they should be updating the market, even if things have settled down now. We really could do with knowing their exposure to future shocks of this nature.

They really should update market.

Has the company commented on this lawsuit?

https://www.sierraclub.org/articles/2022/07/new-lawsuit-targets-fraudulent-transfer-oil-and-gas-wells-evade-cleanup-obligations

It's blue! It's red! It's blue again!

Who cares? It's an income stock.

cunningfox, from the RNSs on 2.8.21 and 1.8.22:

As at 30 July 2021, the issued share capital of BP p.l.c. comprised 20,239,765,576 ordinary shares
As at 29 July 2022, the issued share capital of BP p.l.c. comprised 19,036,485,438 ordinary shares

That's a reduction of over a billion shares, or about 5%.

Rivaldo,

I'm not ignoring the building. It's an integral part of the business they've just acquired as a whole for £4.2m. You can't just strip it out.

Yes, you could do a sale and leaseback, but that would hurt profits. So, lets assume a 5% yield on the property value (generous imo) of £1.65m = £82k deducted from the EBIT of £383k reported in their 2021 accounts = £301k. £2.65m acquisition cost divided by £301k is a price/EBIT of 8.8, which again looks expensive compared to historic multiples.

I trust management here, they have a great track record, so when they say they'll be able to reduce costs and grow the business I believe them. I'm not saying it's a bad acquisition, I'm just saying that it's expensive.

Why would you exclude the freehold property? If I'm judging the company on its return on capital, the property forms part of the capital employed.

Looks a bit on the expensive side compared to usual prices.

I don't see why they can't put the dividend up at least in line with the reduction in share count. Anything less than that is a cut in the cash amount they're paying out which seems silly given the amount of money they're making.

US inflation data came in at 9.1%, above expectations, so the market is pricing in more rate rises from the fed which generally means less oil demand.

Yep, fantastic update.

Profits should be much higher in Q2 I think. The oil price has higher and refinery margins have been higher.

Why not just pay a $100m special dividend, if they want to return it to shareholders? The proposed dividend increase is miserly, and while I don't mind buybacks instead if they actually happen, the wording ("up to $100m" doesn't mean $100m) suggests they might try to find a way to weasel out of it. Strong cash generation is pointless if they just leave it in the bank.

Their cash generation is solid, a $63m increase in 5 months, after any capex, with disruptions to production and the oil price averaging well below the current spot price is a nice result, and I don't care about what happened last year.

I'm just not sure about management's capital allocation decisions. They clearly want to build an empire through acquisition if they can, but sellers are not going to let their assets go cheaply in the current environment, and buying production at the top of the cycle could destroy a lot of value.

Maybe once the Maari acqusition goes through they'll be more willing to give money back to shareholders.

Certainly a nice surprise this morning.

Another good acquisition, looks like a nice cheap multiple.

Stop worrying and enjoy the dividends.

I think it's just the risk of recession in general. If people are struggling with food and gas bills they'll have less money for space marines.

Yeah I don't see how the Ukraine situation affects us except with regards to a general economic slowdown. Around £70 has to be a buying opportunity. P/E is about 18 with a 3.2% dividend yield, GAW usually trades at a higher rating than this.

A week after release, Warhammer 3 is still number 2 in the steam top sellers list and number 3 in the global top sellers list.