Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
I think she is dong a decent job relative to her peers in the sector. I agree with you on the statement. We want honesty yet but quarter to quarter or annual predictions are for the birds. Just deliver the best you can in the current environment. No need for macro predictions.
POO off to a good start. The company needs to hedge...big...once POO moves towards $70. By providing more certainty over P when there is uncertainty over Q will provide more net certainty over the company's deleveraging profile. I'm a long term holder and hoping ENQ take a more sensible approach to hedging
Ok so a fair chunk then!! Would the banks or bond holders have influence over punitive hedging agreements to protect their end of the cap structure - they need interest and principal back not upside. Anyway I knew the risks investing in a highly levered company. I am still optimistic. Time for holding, not whinging. Reckon H2 will produce some good momentum
Sorry confused. Not a new account - posted on here a few weeks back as a newby to the thread regarding interest. My knowledge of Enq fundamentals is proportionate to the frequency of my messages. Im in this for a bit a fun and but not sure “volume is the problem” is any profound justification for the slow uptick - you’re basically saying demand level for the stock is incorrect. On a more detailed note does anyone know how much we are hedged via oil swaps? If we cant participge in the upside of POO then it would make sense why we are lagging the oil index. Hopefully out of the money hedges will unwind over time. Im hopefully and Krakenoil agree with you on patience - bring on H2 2018
TWalbyoff - Agree debt reduction methods need to be explored but not sure I follow your calculation (I’m not an accountant). I think you have taken the interest per the cash flow statement for 2017. The interest was only cash paying when oil reached $65. If you want to estimate normalised interest obligations going forward I would take the P&L figure of c.£150m. The company is highly levered and oil is north of $65 so in spite of higher revenues debt servicing costs will restrict cash flow to equity holders. I’m a shareholder and just think patience is a virtue with this one. I’m not knocking the stock - I’m just saying people have to understand debt servicing payout has significantly increased - as reflected in bond price.
New to the chat and without detailed knowledge on Enquest. Does the interest on the bonds become cash paying when POO > $65 as oppose to being PIK. Surely this hurts the cash flow attributable to shareholders and therefore the equity lags the bond price / PIK note recovery (this is accentuated because the company is highly levered). The equity will come back with time- just needs patience.