Bravo Peter, BRAVO!
Strong existing free cash flow generation from producing assets
Current total liquidity is ~US$2 billion, comprising US$1.2 billion of cash and US$850 million of undrawn corporate facilities
Sufficient financing flexibility to fund both the development of LNG expansion and Alaskan projects:
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Both Alaska and LNG expansion developments to be funded with project financing (same as PNG LNG Project)
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PNG LNG Project debt is being paid down over the same period
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Gearing forecast to remain well below lenders’ covenant in the 40 – 45% range during the development phases including PNG & Alaskan projects
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Flexibility exists to wind back exploration spending if needed to prioritise the development of these world class assets
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Discretion to exercise option and on-sell enlarged interests post appraisal, to reduce development expenditure if in the best interest of shareholders
Based on current oil price and project development cost forecasts, there is adequate capacity to fund these developments without raising additional equity or impacting our dividend policy
I was actually the takeover of a different asset early next year, but this one is definitely as good. The other one still may happen next year.
OSH Price at posting:
$7.38 Sentiment: Buy Disclosure: Held
