The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I definitely thought that GP.
I am very pro Chariot, heavily invested , and have no doubt this will rise as soon as the selling stops. I guess the worry, is what happens if Energean don't go for the extra 10%. One assumes Chariot have a cash issue at that point. This is the bit they need to address IMO..
DYOR
Https://energycapitalpower.com/totalenergies-drives-africa-net-zero/
This is open AIs take on events.. it’s obviously all web based data - but I thought it was a decent summary on what would have potentially spooked / surprised the bigger institutional holders..
To be clear I heavily pro chariot - and with the imminent news flow I expect to see improvement in the comings months .. but I thought this was quite an interesting perspective
DYOR
The low share price of Chariot Transitional Energy can be attributed to a combination of factors, as gathered from various sources. A key event affecting the share price was Chariot's farm-out agreement with Energean for its flagship Anchois gas development project and the nearby Rissana offshore licence in Morocco. This deal was anticipated to provide significant funding and support for both Chariot and the Anchois gas project. However, the terms of the deal, particularly around the pay-back from future revenue and the share of the field given away, led to concerns about Chariot's future cash needs and the valuation of the Anchois project. This has likely contributed to the negative sentiment around the stock
Additionally, there were concerns about Chariot's ongoing cash requirements and the potential for further fundraising. The company had to manage its cash flow carefully, considering the costs associated with its projects in Morocco and other initiatives. The agreement with Energean, while providing some funding upfront, also included deferred payments and carries to first gas, which means Chariot's financial benefits from the project would materialize over time
Moreover, market reactions to the farm-out deal and the subsequent share price movements reflect investor concerns regarding the immediate financial impacts of the deal and its long-term benefits to Chariot. Despite some analysts highlighting the potential undervaluation of Chariot's shares based on the project's prospects and future revenue generation capabilities, the share price has been affected by these near-term challenges and market perceptions
In summary, the low share price of Chariot Transitional Energy appears to be influenced by market reactions to its farm-out agreement with Energean, concerns over future cash needs and funding strategies, and broader investor sentiment regarding the company's long-term prospects and valuation of its flagship project.
Hard to imagine that they will get more than £7 before 2026 with labour government policy on the horizon. Given their polling position they may still take a tough stance on the capital incentive withdrawal. I thought AB handled the question reasonably well, but he was hardly going to say anything else.
I personally thought they hoisted a for sale sign last night - but let’s see
They had a very good 2023… but personally given the clear risk on the horizon I would rather they got on with selling it for 3.5x todays value ..
DYOR
Interesting to listen to the q+a at the end
He is asked the inevitable ‘labour party’ perspective. Handles it reasonably well..
DYOR but they are painting a value disconnect of 3.5 x the market cap .. feels more a ‘we’d welcome a bid aroind that value please!’ Watch this space.. there is little in the form of the future for Jog beyond Buchan! In my mind it translates as were up for sale.. here’s the guide price!!
Https://www.moroccoworldnews.com/2024/02/360656/predator-oil-amp-gas-extends-rig-contract-for-exploration-in-morocco
I thought this was Chars?
Https://youtu.be/E6zaD6oXI68?si=cqvdT3u3Y6uJfMKh
I particularly like the bit where he gets asked about the share price.. he clearly thinks it’s laughable!
From Simon Cawkwell (paragraph 2 for Char, but have pasted Jog for sentence context)
Jersey Oil and Gas (JOG) seems to be coming along. So why it stands at 180p, down slightly on Friday’s close and after today’s RNS I do not know.
Similarly, Chariot (CHAR) announce encouragingly today and is well offered at 9p. Strange.
Https://on.ft.com/3UxHzG3
Back on the topic of near shore energy security.. Chariot are in a very good place
Hard to believe that a bid isnt a talking point (fully accepting that AP would have to vote in favour), but any noise would clearly fuel the share price..
DYOR