Ann: Third Quarter 2018 Earnings Release, page-22

Anyone here remember Sugarkane Field? This will add a bullish upside case

"XXXX" paid $38.7 million for a 3,084 gross / 2,706 net acres in the Sugarkane Field in DeWitt County, Texas from Sabine Oil & Gas Corporation (and an affiliate) and Alerion Gas AXA, LLC. The properties, 95% of which are operated, currently produce 800 boe/d from 20 wells. Estimated annualized EBITDAX from this level of production is $6 million.

Can we call it 6.45 multiple of EV/EBITDAX?
and $48,375 per flowing Boepd


Internal estimates that Proved reserves associated with the acquisition total 13.0 MMBOE, 3.2 MMBOE of which is Proved Developed Producing. 100% of these reserves are associated with the Lower Eagle Ford Shale. Based on the NYMEX Strip on November 15^th (the day of closing), the Proved reserves have PV-10¹ of $77.0 million

Can we call it $2.98/Boe for EV/1P  (cheap ... or $12.09 if 1P PDP ... those PUDs need capital)


Plug in the numbers to the "Recent Eagle Ford Peer Transactions" slide and
EV'19 = EBITDAX x multiple = $262.5M x 6.45 = $1,693M
subtract debt'19 ($375M??)
leaves Equity at ~US$1,318M
and
Stock Price at US$1,318M / 6.868B (?) = US$0.192 = AUD$0.255 (at 0.75 FX conversion)

Since not all "BoEs" are equal using EV/1P or flowing Boepd might not give a representative answer unless normalized. Product mix is important as it a major determinant of Margin.

Under the flowing Boepd metric the EV = $48,750 x 21,500 boepd = $1,040M (almost directly matching the EV/EBITDAX number from the Recent Peer Transaction slide).

Under 6cps might be too tempting to pass up.