Break up value, page-2

In 2008, AJ Lucas bought Mitchell drilling (now Lucas drilling) for $150 million which was 5.6 x EBITDA.

Lucas drilling made $5.6 million EBITDA in the March 2023 quarter. So annualised EBITDA might be $22.4 million. Using an EBITDA multiplier of 5.6 gives 5.6 x 22.4 = $125.5 million value for drilling business.

AJ Lucas bought 45% of Cuadrilla from Riverstone in February 2020 for $2 million after fracking was banned. So Cuadrilla might be worth about $4.5 million.

$125.5 million Lucas drilling + $5.5 million Cuadrilla - $100 million debt = $30 million net worth.

$30 million net worth / $1.38 billion shares = 2.2 cents per share.

The march 2023 quarter was a bit of a disapointment after the very good December 2022 quarter. Hence the recent collapse in the share price. If the June quarter has better profit then the share price should recover.