Sea aims to be FCF+ , with modest growth and repay debt . Their numbers say that they can do that . When that actually happens there should be a rerate .
I agree that the high leverage terrifies the Market and is the issue that is keeping the SP low compared to what it would be expected to be if the POO was not so volatile .
If the POO spikes up repayment of debt should take priority over accelerating the pace of drilling . Lowering their risk profile imo will have a bigger effect on the SP than increased production and reducing debt at a slower rate . At least until the debt is at a lower more manageable level . Big drops in the POO can come out of a Blue Sky .
SEA Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
