Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Half year earnings are over 500 million for this year.
Genuinely not worried,
Asset portfolio can comfortably pay down debt over the long term and leave value for the shareholders.
IMO
How many times does it need to be said. The earning power of those assets far exceeds the cost.
Earnings-cost = shareholder value
Agree Tarth, not in the least bit worried.
Do people really think we are going to be talking about this by year end?
US Production has been stuck at 11,000 for weeks now. Lots of wells were shut in at the start of the lockdown hence the big drop in production to begin with, I think these are getting opened back up again which is offsetting natural decline rates but even saying that I don't think we should expect US production to drop below 10 million bbl/d this year
What's this all about then?
Mavrick,
I think they are bringing back on production that was shut in and that is offsetting the natural declines. Give it another month or 2 and that should continue to down
Yeah Dodge,
That plus the EU deal may be giving a more positive general outook
Yeah Rookie, feel the same, probably need it to look like it's going to sustain the oil price to get priced in. Hopefully Brent hangs on
No obvious catalyst. I'm thinking buyers must be seeing signals of a correction coming soon.
***Dodge; I think they should step back, and do everything possible to send cash to the bank.
.
No buying assets, no buying fields, no drilling, . . .****
That's fine, your level of analysis tells me you probably shouldn't be investing in anything. Get yourself a passive fund and relax man, see how that goes for you
"No, I do not think it will be profitable." SK
Why not?
Tell me your reasoning, I'm happy to listen
***This deal will not add shareholder value, IMO.
.
IMO, this is a dark day for Premier Oil. I was hoping they would cancel the deal; but no.****
In what way? Do you not think it will be profitable?
That's all great, hydrogen.
.
However, take a look at PMO's share price, and its color
I would say it's no different from 99% of oil companies. Doesn't seem related to the announcement at all
**Share price will drop, in 3 minutes time.***
Still waiting......
Alright Grampa.
Share price will rise a little, not much I expect as we all know about it.
another poster claimed 1 year @ 100 dollars a barrel we will be debt free.
Grippa, if oil hit $100 on the 31 of Dec 2020 and stayed there for a full year and we were completely unhedged it would bring in about 3 billion dollars for the year, so yes, not bad at all and the share price would probably be up over £4.
Maybe more realistic is the average of oil price for the last 20 years which is $65
About 1.7 billion of earnings and a share price valuation of about £1.68
I can't see any reason to why you have the add decommissioning at this stage?
My understanding is decommissioning should be at the end of the project?????
AK, I see you point but, less confusing would be if I took the commissioning costs away from the earnings but we would still end up at the same SP for that. There's no way to get around it.
My calcs represent what the share price should be if the asset purchase was announced today at the current share price. Obviously it's different now, we all know the details of the deal and so it must have already been taken into consideration by the market.
It was purely an exercise to show that a good deal is a good deal and it shouldn't matter how the equity is raised, in fact, if share holders can fork out for it all the better because there is no interest to pay to shareholders, at least at this present moment in relation to PMO. If it returns more then what was paid for it's a net benefit to the shareholder.
AK, when evaluating the value of an asset then earnings and liabilities should be taken into consideration. Decommissioning is a liability, in my eyes the future value of an asset is it's earnings - liabilities
Revised to reflect De-commissioning costs.
Reserves of the BP assets equal to 25 million according to this article.
https://www.insider.co.uk/news/premier-oil-buys-assets-bp-21229025
Lets err on the side of caution and lower that to 20million to account for this years production.
Let set the OPEX at $17/boe- $43-$17= $26 Earnings/boe
Lifetime earnings @ Brent $43 26 X 20million = $520,000,000 or £416,000,000GBP
Amount of new shares required to raise the equity for purchase GBP/USD @ 1.25= $410m/.4172*1.25 = 786,193,672 (decommissioning costs added)
Lifetime earnings + current Mkt cap = 416,000,000 + 388,671,000 = 804,671,000
New shares + outstanding shares amount = 786,193,672 + 922,030,000 = 1,708,223,672
New realised share price based on dilution alone = 804,671,000/1,708,223,672 = .471
So, you can see how it is sort of baked into the price already.