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Research Tree provides access to ongoing research coverage, media content and regulatory news on JOURNEY ENERGY INC. We currently have 25 research reports from 1 professional analysts.
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JOURNEY ENERGY INC
JOURNEY ENERGY INC
Reports Second Quarter Results Along with a Series of Transactions to Reshape the Business
11 Aug 16
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. Production guidance for the year remains largely intact along with total net capital spending, although E&D spending will effectively double, offset by net disposition proceeds of $9 mm. With a material uplift to our cash flow outlook we have increased our target price to $2.25 per share and maintain our Market Perform ranking.
2Q16e Quarterly Preview
26 Jul 16
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 reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
Reports First Quarter Results, Trims Production Guidance
11 May 16
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 20th and Management anticipating a reduction of ~20%. Updating our hedge profile and adjusting cost inputs based on actual results to date sees a 21% reduction to our 2016e cash flow, while 2017e cash flow falls 14%. Given the moves to our cash flow we have reduced our target price to $2.00 per share, while maintaining our Market Perform ranking
REPORTS 1Q16 FINANCIAL RESULTS
10 May 16
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.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.