The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
May be the market does not see any of the synergies the disparate lands create here. It's incumbent upon the board to prove that the whole is more than the sum of its parts.
I3 EV/DACF: 2.2x
Peer average EV/DACF: 3.4x
So, presently, this thing is 'peerless' in its dis-valuation
There is a specialist investment bank/research shop in Calgary that is presently putting on a 3 day conference in Toronto. I3 partners like Rubellite, and far more junior operators are there. Why is not I3 there?
https://x.com/DerAchsenZeit/status/1701449322460823561?s=20
The perception is this company allowed some investors to get out before the bad news of the divvy cut was published.
This gent below is a big roller. It's going to be hard to get him back.
https://twitter.com/JamesHMackay/status/1682089590583074838?s=20
Louis, can you give us a primer on the board? I am familiar with John Festival, a legendary oilman of WCSB. The rest are unknowns.
In effect, they are paying $635M CAD for similar volume of ITE daily production, slightly better decline rates, in the SAME areas (Dunvegan, Cardium etc etc).
I3 CAD market cap: $270M
This is an indictment against the board and management. There's no other explanation for this.
I believe our "Central Alberta" lands are considered "Deep Basin".
https://www.peyto.com/Files/News/2023/PeytoRepsolAcquisitionPressRelease.pdf
The perfidy of Perfidious Albion
In a weird twist of events, having Trafigura as a lender acts as a counter to the Londinium colonialists. First time I see a positive in a company debt covenants. The big dog is now in Canada.
I think the first 2 should be resolved fairly soon.
As for the others: these are strategy issues that have been inherited as part of the deal to 'break into Canada'. That "total return" model, coupled with the present product mix and an operational concept that is too volatile leaves people confused.
Not to mention that the dividend policy is actually extortion money. London continues to have a colonial mindset: it would rather extract value than create it.
Ah, I see. He called for a 10x in 2021.
Not a good look.
https://ceo.ca/@Drjimjones/10-bagger-in-oil-youve-never-heard-of-i3-energy
Who is he? Is he big in the UK 'scene'?
What was Dr. Jim Jone's beef with 'management'
https://twitter.com/DerAchsenZeit/status/1697654347788849518?s=20
all the remaining drilling (7) is going to be in clearwater according to an analyst report i saw. they are trying to get 'less gassy'.
incidentally, simmonette has seen zero capital from them as it is the most expensive acreage to drill ($8m-$10m per hole). they best farm that **** out, or outright sell it. looking like there is a bit of a gold rush in that area (montney)
There is a transaction to be had in there.
"At the moment the fear factor the “not knowing”"
Yeah, the "not knowing" is directly correlated to the 'not publishing' quarterly part of their business stratigery.
Yes.
I admit. I was greedy about that dividend. I3 was quite the lesson in greed
Most of I3 production is from Deep Basin. Let's see what multiple Repsol gets. Generally, most players in Canada have starved Deep Basin of capital over the years.
"MS had detailed meeting in Camaro office this week regarding the 12 month comms plan. He's signed up to InvestorMeet for 12 month contract and wants to use this as much as possible for PI comms."
Right! And what's he doing about Canada's trading volumes?
" if you aggregate the production gains over the last 2 years i3e would be almost certainly in the top 25th percentile in Canada. "
Lets see:
they bought
11,020 BOE/D from Gain
8,400 BOE/D from Cenovus
1,065 BOE/D from Toscana
Total: 20,485
They've only replaced decline rates (17%) at the current pace.