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Enerplus(ERF-TSX/NYSE); BUY, C$9.00 ― 4Q19 and well performance review | Gibson Energy (GEI-TSX); BUY, C$30.00 ― Growth rates and return metrics continue to significantly outpace the peer average | Journey Energy (JOY-TSX); HOLD, C$1.50 ― Reports 2019 reserves and 1H20e guidance; uncertainty surrounding KRC Duvernay JV | PHX Energy Services(PHX-TSX); BUY, C$5.50 ― FLASH: Strong 4Q19 results and another consecutive U.S. market share record
Companies: ERF GEI JOY PHX
Journey reported third quarter financial and operating results that were largely in line with both GMPFE and consensus expectations, though AFFO missed on increased cash costs and lower realized pricing (AFFOPS of $0.15 vs. GMPFE $0.16 vs. consensus $0.16). On September 30, 2019, Journey refinanced 2x prior notes totaling $52 mm, repaying $8 mm in principal and replacing/extending the remaining $44 mm through the issuance of 2x 2nd lien notes.
Companies: Journey Energy, Inc.
Journey reported first quarter financial and operating results that were slightly ahead of our forecast though trailed consensus (CFPS of $0.20 vs. GMPFE $0.17 vs. consensus $0.21).
Journey reported fourth quarter financial and operating results that were in line with our forecast though trailed consensus (CFPS of -$0.01 vs. GMPFE at -$0.00 vs. consensus at $0.10).
3Q18 production of 10,227 boe/d (48% liquids) generated CFPS of $0.20/sh, significantly outpacing both GMPFE and consensus estimates of $0.15/sh and $0.175/sh, respectively, as top line realized pricing was stronger than forecasted. Journey invested ~$9.6 mm into E&D activity during 3Q18, with expenditures being directed towards land acquisitions, the drilling, completion and tie-in of 3x Skiff wells, and other minor projects.
Journey reported 2Q18 production of 10,036 boe/d (47% liquids), in line with both GMPFE and consensus expectations. Reported 2Q18 funds flow of $5.3 mm ($0.14/sh) trailed both GMPFE and consensus estimates $0.16/sh. The largest contributing factor to the funds flow miss was hedging losses, with realized hedging losses influencing funds flow to the tune of $4.35/boe.
Journey reported fourth quarter financial and operational results which were largely in line, though cash flow was modestly higher than our expectations on the back of decreasing cash costs and greater than forecasted hedging gains. The company has maintained its prior 2018e guidance, continuing to contemplate $31 mm in capital spending on the drilling of 9x wells, generating production volumes of 10,100-10,500 boe/d (47% liquids). Recall, this budget does not include any planned development of
Journey reported its 2017 year-end reserve book, reflective of top-line reserve growth low cost adds heavily influenced by the company’s Gilby consolidation acquisition. On a debt-adjusted basis, Journey’s reserve growth was negative, and related F&D metrics are likely to be comparatively underwhelming within its peer group. Propelling activity on its 102 section footprint in the West Shale Basin, amenable to Duvernay Shale light oil/condensate deliverability, is the prime focus of the company’s
Journey will repurchase for cancellation 12.7 mm common shares from MIE Maple Investments Limited, the company’s largest shareholder, at a price of $1.68/sh. Subsequent to closing on February 2, 2018, MIE will retain 3.7 mm of Journey’s pro-forma 38.5 mm outstanding shares. Concurrent with the $21.3 mm share repurchase above, Journey has announced, through private placement with AIMCo, the issuance of 22,000 units for gross proceeds of $22 mm. Each unit is comprised of 1 $1,000 promissory note
We would characterize Journey’s second quarter results as positive given a reduced outlook for production costs that will drive higher than anticipated cash flow and an improved debt picture going forward. During and subsequent to quarter-end the Company undertook a flurry of A&D activity, shedding just over 700 boe/d of production in order to eliminate higher cost production and refocus the asset base, while adding key infrastructure to support development in the Company’s core areas. Productio
Impact - positive given a reduced outlook for production costs driving higher than anticipated cash flow and an improved debt picture.
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly rev
Companies: 0UG9 ARX BTE BNP 0UR7 ERF POU 0VCO PGF PWT PSK TOU VET WCP BNE CJ CR DEE JOY KEL NVA PPY PNE RRX RMP SGY TNZ CKE GXE IKM MQL PRQ SKX TVE TVETF YO LTS PMT SPE TET
Impact - slightly negative as while the reduction was in line with that previously alluded to by Management it limits the Company's financial flexibility going forward
Journey reported first quarter results that included production that was in line with expectations, while cash flow fell short largely due to one-time severance costs. Management reiterated its plans to spend only $9 mm in 2016e, although production guidance has been trimmed due to delays in deployment of 2016 capital along with delays in returning wells to production given the current pricing environment. The Company’s bank line is currently under review, with a completion date expected of May
Impact: Neutral to slightly negative as the Company posted results that we view as in line to slightly behind, while restating previous capital guidance with a modestly trimmed production outlook. We would note that the Company retains a decent inventory of opportunities should a sustained crude oil recovery materialize.
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Companies: Sylvania Platinum Ltd.
Companies: Pensana Plc
• Chariot, the Neura Group, H1 Holdings and Meadows Energy have formed Etana Energy, a new electricity trading company in South Africa. Etana is one of the few companies granted an electricity trading licence in the country.
• The licence allows Etana to sell and buy electricity on the grid, opening up access to a range of high-volume off-takers including municipal, industrial and retail customers.
• Chariot, H1 Holdings and Meadows Energy hold respectively 25%, 21% and 5% of Etana and bring ex
Companies: Chariot Limited
Diversified Energy (Diversified) is focused primarily on US natural gas production. Its strategy is to acquire and operate producing energy assets, which has seen it grow rapidly and create significant shareholder value. Since its 2017 IPO, the group has grown reserves 15x, increased production over 280x, raised the dividend 11 times and grown its market value 16x to £1.1bn. Diversified is currently the 2nd largest independent energy company by production, the 4th largest by market value and the
Companies: Diversified Energy Company PLC
Companies: IOG PLC
Verbier licence extension
Companies: Jersey Oil & Gas PLC
Calima Energy (CE1 AU)C; Target price of A$0.60 per share: Market cap paid back in 2 years, even after incorporating higher differentials - Four wells out of the five well 4Q22 programme have now been drilled with two wells already in production. Gemini#10 is producing in line with the type curve (IP of 120 boe/d gross and 60 boe/d net to Calima 50% WI). Gemini #11 was put into production on 24 November while Gemini#12 will be brought
Companies: PEN TCFF ALV CE1 HHR ALV RHC RHC SOU EOG ENQ ZPHR IOG PMG NOG SDX CHAR PEN
Work programme update and Q3 2022 results
Companies: Arrow Exploration Corp.
SolGold (“SOLG”) has announced it is raising ~US$36m of new equity through the issuance of 180m new shares, including 155m to Jiangxi Copper (Hong Kong) Investment Company Limited ("Jiangxi"). Jiangxi, a Chinese state-owned enterprise and the largest copper producer in Mainland China, will have a 6.3% shareholding in SOLG upon closing of the raise, expected around 9 Dec subject to due diligence. This new cash will further bolster the balance sheet following the announcement on 7 Nov of a US$50m
Companies: SolGold Plc (SOLG:TSE)SolGold Plc (SOLG:LON)
Hannam & Partners
Dish of the day
No joiners today.
Leavers: No leavers today.
What’s cooking in the IPO kitchen?**
Kistos Holdings plc, intends to join AIM. The Company was incorporated to act as a new holding company for the group companies 0f Kistos plc (KIST), a holding company with the objective of creating value for its investors through the acquisition and management of companies or businesses in the energy sector. Anticipated Market Cap £327m. Expected 22 Dec 2022.
AT85 Global Mid-Market Infrastr
Companies: SEE JSE MKA EAH ABDP MRL TENG KIBO
As part of the continued deregulation of the power market in South Africa, Chariot has formed a new JV through a 25% interest in a new South Africa electricity trading company, Etana Energy, which has been granted an electricity trading licence by the National Energy Regulator of South Africa (NERSA). As one of the largest energy markets in Africa, the Etana platform will provide Chariot with the opportunity to decarbonise the South African power sector via the supply of renewable power to both
Jersey Oil & Gas announced the extension of the Verbier licence (P2170) to end August 2023, which is now aligned with the company's core Greater Buchan Area licence (P2498).
Dish of the day
BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinatio
Companies: RNO BEM BOIL DOTD NTQ KMK PMG EYE EVG ENET
Companies: RNO DOTD NTQ KMK PMG EVG