Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Its actually a lot better than it is outlined - the total cash being paid out in 2022 is being increased by 25%, but the monthly dividend is being hiked by over 35%. Its unlikely they would get themselves into a position where they would have to decrease the monthly dividend next year (unless there is a large drop in commodity prices) and it should also be paid out 12 times in 2023 which would then be a total of 17.1p, so the dividend is now effectively 6.57%
I3E share price has gone up rapidly over a relatively sharp period - its consolidating somewhat now and yesterdays sharp fall in oil is leading to a dip. Forget all this nonsense about shadowy forces attacking it, to get in cheap, 99% of the time it has nothing to do with this.
I wouldn't pay much attention to Simply Wall Street, Gary59 is right all the recent purchases have been pretty inconsequential. I very much suspect Simply Wall Street includes in that calculation shares held in treasury that have been purchased through share buybacks.
As far as I can see very few management have actively bought large number of shares, there have simply been a few small purchases which I suspect are their allowances under employee ownership schemes and the rest is from the exercise of free options.
"why are people selling ????"
Because there is a proportion of the shares traded by people have utterly zero interest in the underlying company and are just buying and selling based upon market signals, plus a few others who have specified return targets and take those returns when reached regardless of underlying fundamentals.
"Serenity is still risky - what HUR need is another income stream by the end of 2022"
Not convinced there are many value plays out there for cashflow producing assets now and I'm not sure why they need cashflow. As far as I understand it, they can continue to run Lancaster while it is cashflow positive which at current prices should be this year and then they have the decommissioning liabilities covered - great if they can get cashflow, but they can go back to be a North Sea exploration and development company.
Serenity is ideal as it is one of the most advanced plays in the North Sea due to the synergies with Tain, which is development ready and the appraisal well is not that expensive. As you highlight there is risk, but it looks a reasonable one, and although I3E got it badly wrong with Liberator, the Liberator well did allow them to recalibrate the seismics which continue to support the Serenity case.
Not trying to talk my book here - I just highlight I think its is quite possible it happens
I'm invested in I3E and they have the Serenity appraisal drill coming in probably Q3 this year - they have already farmed out 25% for Europa Oil and gas for 46% cost carry and have stated they are actively looking to farm down further, I believe they are effectively looking for as close to zero carry as possible.
I'd suggest there is a very real prospect Hurricane farm in on this - its a very decent prospect at appraisal stage and if it shows success, development would almost be certainly tied in with Tain which is awaiting final investment decision by Repsol, so development costs are low and time to development is rapid compared to most fields at this stage.
Until now the directors of Hurricane will have been focussing on finalising the audited financials and meeting their fiduciary responsibility to stakeholders - primarily reaching the point the bondholders can be paid in full. Its pretty clear the company is at that point now.
I could see Hurricane Energy being a potential farm in partner - oil prices have saved them from certain default under the bonds and based upon the financial results released last week they expect to pay the bonds at end of June and have about $60million in cash remaining looking for opportunities - I can't see them investing anymore in their fractured basement plays after the failure of Lancaster, there is some conventional potential around Lancaster that they could explore but its pretty small and expensive, so what better than a drill ready appraisal that could have relatively short timelines to development.
I expect up until the Directors have been focussed on ensuring the going concern of the business and the repayment of the bonds as that is where their fiduciary responsibility lay, but having now released the audited financials and having clear visibility on bond repayment they can probably turn their focus elsewhere.
Agree Bots - the board have made it very clear the metrics they look to acquire on and that these only happen in the distressed parts of the cycle - which is exactly what they did. Now in the strong part of the cycle they develop the assets they have purchased cheaply, uses hedging as appropriate, distribute a certain amount of cash to shareholders and keep some powder dry for when the cycle turns again
This ought to make this interesting
TSX showing a rapid rally and close at $0.52 - is that real??
https://money.tmx.com/en/quote/ITE
I'm invested in both I3E and JSE and I'd definitely recommend both - I3 Energy will be quicker to distribute cashflows and I think given the comparative valuations I'd sway towards I3 Energy possibly offering more upside, but I'm much happier being diversified across both. A few weeks ago I'd have said the weakness in the I3 case was the high proportion of North American gas production, but prices there have been on a tear recently and given there is likely to be hugely increased demand for exports of North American LNG over the next years I can't see it reversing although it does rely on a lot of infrastructure investment and a US Government staying fossil fuel and export friendly.
Hopefully Jadestone can advance their own gas projects in the coming months.
Tony or anybody else - have you done any rough calcs on the amount of gas hedged as a proportion of production. Could that be a slight negative given the run that gas prices have been on in recent days, so I3e have less exposure to the market rates as a large proportion is hedged, or is it inconsequential?
Well I've come back in again - pretty much the same price as exited at. I was concerned that Kazahkstan could follow down the Belarus path and throw its lot in with Putin, given Russia supported the current regime in the recent trouble, but they've strongly pushed back and are supporting Ukraine's right to sovereignty. So political risk seems about the same as before the invasion.
Hopefully a Q1 update and 2020 financials, combined with a higher gold price should push the SP back up a but - I guess the main question as that moment is how they source the capital needed for further expansion as clearly issuing bonds through Russia is no longer an option.
"Is going up in the US ever day that's what you should be watching imo"
Long term the trends look good - North American gas is saturated hence much lower prices than global prices, however in order to replace Russian gas in Europe there needs to be a massive expansion of export facilities of LNG from North America which over the longer term should drive prices up.
"Would like to see another acquisition or a buy-in. More than plenty to do either or both."
Unlikely at the moment as sector valuations are now in the up cycle as alluded to in the investor video yesterday - they have strict return hurdles for buyins and there are unlikely to be any deals around of that nature. They also now have plenty of owned development opportunities to deploy capital.
It was an excellent interview and almost to the point where they disclosed things that should have been done via RNS - but goods things, they virtually confirmed the dividend would be increased and that they would double the capital budget to exit the year with 23-24kbopd production.
Should be upcoming newsflow on the drilling campaign and I'd expect that to contain details on the capital budget expansion - I'd expect any change to the dividend will come when financial results are released.