Just listened to EM presentation. Haven't had time to review presentation but will later.
Started a new thread because excessive moderations make the others difficult ... and fair warning ... please stay on topic ... this is about the Enercom Presentation content.
Notes: Current generation of wells (so last 25 or so) producing: ~90,000 BO in 1st 6 mths D&C Capex of ~$5M compelling WELL LEVEL economics (note that ... not corporate level) can grow WITHIN CASH FLOW at $40 with selective capital investments at ~15% CAGR over next 5 years ~400 locations at this level available (so 16 years at 25/yr)
Been able to improve Operating Cost by reducing PXD G&T from $13-$15/BO to around $3/BO (makes a bog EBITDA difference)
Proceeds of Dimmit sale to be received approx late Q3 or early Q4 ... subject to normal PSA conditions
Q2 is net debt peak (as has been noted by @tt2000 many times).
Return profile "materially better" (as I've shown multiple times in production analysis) in new PXD acreage wells and Live Oak and Atascosa are tops (especially on %oil ... as has been noted before also ... Qtrly results vary on timing and location)
12 wells (3 x 4 well pads) likely TIL'ed this Qtr ... that will get SEA to annual production guidance
Hedging strategy differentiates SEA ... decision done before capital committed by looking at Strip 12 -24 mths out and hedging approx 80% of expected production volume (not necessarily in 1 go) over 18mths to cover Capex spend ... we've discussed this aspect (almost to death).
The redomicilification (is that really a word) came up again .... so cheap on comp metrics ... maybe a ploy to point that out to US investors so that buy now ... create demand ... stock goes up.
That's it for now. Sorry if the tone is "short".
SEA Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
