Ann: Guidance and operations update, page-40

gers said they had yet to be crossed for any raising as of Tuesday night, but they’re looking out for it. There’s plenty of attention on the energy sector and Cooper Energy seasoned the market with updated FY22 guidance on Monday.
Macquarie Capital and Euroz Hartleys are said to be sticking close to Cooper Energy, ready to help with the expected funding task.
RELATED QUOTES
COECooper Energy

$0.295 1.72%
1 year1 day
Jun 21Dec 21Jun 220.1750.2450.315


Updated: Jun 8, 2022 – 8.09am. Data is 20 mins delayed.
View COE related articles
APAAPA Group

$11.200 -1.75%

Jun 21Dec 21Jun 227.7009.90012.100




Advertisement
As always, the success (or not) of any deal would come down to price. APA has sunk a lot of money into Orbost, only to see it struggle to hit nameplate capacity and even took a $249.3 million writedown on it last year.
Both APA and Cooper’s investors have long seen Cooper buying the Orbost plant as the best solution for both companies’ worries. They two extended talks to try to sort out a new agreement by June 30.
Buying Orbost would improve Cooper Energy’s operating cashflow (by cutting out the tariff it pays to APA) and margins, especially if it could pick up the plan for close to the cut-price of about $225 million, in line with the plant’s now book value.
To recap, APA Group owns and operates Orbost, and Cooper pays a fee to process its gas through it. Orbost’s flown under its target capacity of 68 TJs a day. After lots of tinkering, Orbost is still only up to average of 55.7 TJs a day in May.
June 30’s only three weeks away, but fund managers reckoned it’s still enough time for the APA and Cooper to hammer out a deal.
Both companies declined to comment on Tuesday.