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clock Created with Sketch. 21/11/18
10:54
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Originally posted by cmonaussie
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Anyone here remember Sugarkane Field? This will add a bullish upside casepaid $38.7 million for a 3,084 gross / 2,706 net acres in the Sugarkane Field in DeWitt County, Texas from Sabine Oil & Gas Corporation (and an affiliate) and Alerion Gas AXA, LLC. The properties, 95% of which are operated, currently produce 800 boe/d from 20 wells. Estimated annualized EBITDAX from this level of production is $6 million. Can we call it 6.45 multiple of EV/EBITDAX? Internal estimates that Proved reserves associated with the acquisition total 13.0 MMBOE, 3.2 MMBOE of which is Proved Developed Producing. 100% of these reserves are associated with the Lower Eagle Ford Shale. Based on the NYMEX Strip on November 15th (the day of closing), the Proved reserves have PV-101 of $77.0 million Can we call it $2.98/Boe for EV/1P (cheap ... or $12.09 if 1P PDP ... those PUDs need capital) Plug in the numbers to the "Recent Eagle Ford Peer Transactions" slide andEV'19 = EBITDAX x multiple = $262.5M x 6.45 = $1,693M debt'19 ($375M?? )Stock Price at US$1,318M / 6.868B (? ) = US$0.192 = AUD$0.255 (at 0.75 FX conversion) Since not all "BoEs" are equal using EV/1P or flowing Boepd might not give a representative answer unless normalized. Product mix is important as it a major determinant of Margin. Under the flowing Boepd metric the EV = $48,750 x 21,500 boepd = $1,040M (almost directly matching the EV/EBITDAX number from the Recent Peer Transaction slide). Under 6cps might be too tempting to pass up.
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