There is a lot in the commentary on the investor call that should help drive uplift in valuations:
Growth projects to take production from 19PJ to 54PJ are defined, with capex in line with pre-existing economics
Remaining growth to end of FY25 of +6PJ to 60PJ have a range of sources: a) debottlenecking via electrification to free up reserves, b) appraisal of the 3P resources; c) reserves from deals with adjacent third party acreage d) Artemis and Bowen. In summary, that's a lot of optionality so collectively, I'd expect analysts to de-risk this growth
Economies of scale in incremental expansions, particularly tolls through 3rd party compression as fixed costs are sunk and paid for
General good cost control in operations, e.g., sustaining capex
Improving confidence on subsurfaces "our models are generally conservative" which we see in "lower capital and operating cost"
Tightness of the East Coast gas market, particularly from FY23 out, there SXY has a large unconstracted exposure (e.g. opportunity)
Laser focus on FCF generation and dividend growth.... "a low risk investor proposition for our large retail shareholder base"
I expect decent valuation model updates over the next few days, which will drive SP.
Ian Davies: "We've got the runs on the board, and we're putting more runs on the board."
SXY Price at posting:
$3.09 Sentiment: Buy Disclosure: Held