I admit I know nothing about Sundance Energy, and I'm no financial guru, so take what I have to say with a grain of salt, but ... on the surface, at least to me, this is not looking like a sound investment. From CommSec:
{caption}Total Shareholder Return (avg annual rate){/caption} 1 1yr 3yr 5yr 10yr 2 -71.8% -43.8% -26.0% -7.2%
So those figures are a result of the company's prowess over the last decade despite being a period of relatively high oil prices (apart from the 1 year figure). As to the last year, they have hedged a lot of their production at around $50 per barrel, yet despite this they still have a 1 year return of -71.8%? Not a good look at all.
I then read the latest Chairman's report and presentation. I could not find even a single mention of a profit or loss in either. No profit and loss statement at all. Did I miss it somewhere? There's talk of EBITDAX but that is not the same as profit is it? Lots of talk about cost reductions though. Huge debt:
The Company’s PV10 of Proved Reserves ($243.4 million)(1) to outstanding debt ($192.0 million) ratio as at 1 January 2016 was 1.3x.
Plus Sundance is in the USA. Not a good look considering their last failed USA debacle.
Can someone find any redeeming features in this company? Is this the best they can come up with?
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metgasco ltd
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I admit I know nothing about Sundance Energy, and I'm no...
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