Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CATHEDRAL ENERGY SERVICES LT. We currently have 18 research reports from 1 professional analysts.
|25Jan17 12:45||MKW||Cathedral Energy Services Ltd. Announces Increase to Previously Announced Bought Deal Financing to $11.2 Million|
|24Jan17 20:33||MKW||Cathedral Energy Services Ltd. Announces $10.1 Million Bought Deal Financing|
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CATHEDRAL ENERGY SERVICES LT
CATHEDRAL ENERGY SERVICES LT
ANNOUNCES STRATEGIC REVIEW PROCESS AND CREDIT FACILITY UPDATE
29 Aug 16
Impact: Positive, especially in light of the 40% decline in Cathedral's share price over the prior five trading days. Cathedral has initiated a strategic review process to consider different avenues for creating shareholder value, which could include capital raising (debt or equity), the sale of the Company, divestitures, mergers or joint venture or partnership transactions. The Company does not intend to provide any updates on the strategic review process until there is a formal announcement.
2Q16 Results Involve Additional Covenant Amendments
11 Aug 16
Cathedral has received a fourth amendment from its lending syndicate that has instituted minimum EBITDAS covenants, replacing traditional credit ratios until 3Q17e. We believe there is a chance the Company does not meet these requirements. The Company’s lending syndicate has worked with Cathedral until this point in the downturn. Given our view of an activity recovery in 2017e, we expect an amenable solution will be reached. Cathedral reported 2Q16 EBITDAS of a loss of $2 mm, modestly below our loss of $1 mm.
2Q16 RESULTS INVOLVE ADDITIONAL COVENANT AMENDMENTS
10 Aug 16
Impact: Negative, as Cathedral's lending syndicate continues to reduce the Company's financial flexibility. Cathedral's lending syndicate intends to reduce the Company's facility from $35 mm to $30 mm by December 31, 2016 and to $25 mm by March 31, 2017. As a result, Cathedral intends to investigate alternative forms of financing and potential corporate partnerships and transactions to improve liquidity.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.