Ebitdax is insufficient and unable to fund company developments. Board are unimpressed to extent Executive support staff numbers are reduced. Range development, critical to achieving attractive claims by executives, has been stopped. Farm outs to fund development of existing producing fields is resorted to.
Significant local and international companies are anticipating depressed gas prices for some time to come. Current spot gas prices are below AU$4 gigajoule - CTP is not making spot sales at this price and says it is " unviable " and expected to continue " short to medium term ".
Collapse in LNG prices ensures local LNG exporters have capacity to continue diverting unsold gas to local market. There is no shortage of gas locally and prices are not set to rebound 2022. Price is the issue NOT shortage of gas.
Range exploration is stopped. It will not be developed for readiness to deliver gas to market 2022. CTP plan to use structured finance to develop Range. Farm outs may be ready to supply additional gas from current producing fields but who will pay the price for the gas ? Will NGP be ready to accommodate extra gas ?
Farm outs reduce CTP ownership of producing fields and associated income. Macquarie loans have to be reduced by same proportional amount CTP surrenders in farm outs. Reduced ownership does not position CTP to " generate multiples..current EBITDX.."
Future projections about CTP EBITDAX are fraught.
Do you have company / industry associations etc., to declare ?
Ebitdax is insufficient and unable to fund company developments....
Add to My Watchlist
What is My Watchlist?
