Ithaca Energy Share Discussion Threads

[thegreatgeraldo] 06/2/2017 18:49

ziblot
6 Feb '17 - 16:58 - 19724 of 19726 0 0
Hope it drags on a bit, will switch some in dealing a/c into my ISA April 6. Just don't like paying the tax man.


If only......... ;-#))

[bountyhunter] 06/2/2017 18:26

...so many newcomers out of the woodwork today telling us what to do, 'Barvin' we don't want or need your congratulations for such a derisory offer or recommendation to sell out and reinvest in BOR!

[barvin] 06/2/2017 18:06

Well done all here, a great share price rise over 12 months and final result. Remember Chris Oil used to bang on about this stick constantly, he's done well here though.Anyone looking where next to park the cash next should take a look at BOR. Just above cash with Falklands mentioned in FT today by PMO CEO saying how the region is looking very promising. A new farm out company could be big.

[ziblot] 06/2/2017 16:58

Hope it drags on a bit, will switch some in dealing a/c into my ISA April 6. Just don't like paying the tax man.

[bigdazzler] 06/2/2017 16:49

Well after my intial annoyance about IMO the low ball offer (I am still cross) I have sold out today.

First thoughts was to refuse but I'm sure this will get through and I thought might as well have the money now. I also didn't want any adverse currency movements to make the deal any worse than it currently is.

[ziblot] 06/2/2017 16:49

Sold down the river just when expecting share price to gain on first oil.

[steve73] 06/2/2017 16:47

Well I decided to sell out at 119.25 rather than hanging on for a couple of months as there as plenty of other opportunities around...
IIRC Delek rejected farming into ENQ's Kraken a few months before ENQ refinanced - wonder if Delek would like a bigger bite there now?

[freddie ferret] 06/2/2017 16:47

Umm......

If we all start buying and keep the share price above 120p then institutions that might be inclined to accept 120p will sell to us. Institutions that are not happy with 120p will not be inclined to sell or accept the offer anyway.

Not sure if this is sensible.

[edmundshaw] 06/2/2017 16:33

Another way of looking at things from the institutional point of view is that large holdings often take time and effort to shift, and realizing large paper profits can cause those profits to suffer if a large buyer is not available. This is quite a nice out for any ii who thinks it is even close to a fair takeout price.

I am not so sure on reflection that iis will rush to reject this offer...

[speedsgh] 06/2/2017 16:22

The counter-argument provided by FT's Lex Column today...

Ithaca/Delek: North Sea star fisher -

Israeli group’s offer for the oil explorer is pitched fairly

Phineas Taylor Barnum prepared for his death in an unusual way: he had the New York Evening Sun print his obituary early. North Sea oil explorers — and workers — will have read of the imminent end of that region’s prospects more than once. Yet every few years, buyers return to buy up reputedly fading oilfields.

Delek Group of Israel sees life under the North Sea. It agreed to buy London and Toronto-listed Ithaca Energy on Monday for £1.20 per share at an enterprise value of $1.24bn, including net debt of $614m. While the premium over the undisturbed price looks low at 12 per cent, it is low for good reason.

As a holder of a fifth of Ithaca’s shares, Delek should know what it is getting into. Having bought shares in late 2015, it will have already benefited over the past year from the bull run in Ithaca’s share price, which has risen fivefold. Delek may have waited to bid partly to get more confidence on Ithaca’s cash flow outlook. Stella, Ithaca’s key 55 per cent-owned oilfield, had been severely delayed — due to equipment problems with a floating production vessel — but should come on stream this month. Ithaca’s production, at 9,300 barrels a day at the end of last year, will more than double later this year.

Could Delek have paid a bit more? Perhaps. But at £1.20, Delek has offered as much as a fifth above broker RBC’s net asset value per share estimate from the beginning of this year. Given almost every London-listed oil explorer trades below its respective NAV, Ithaca does not seem to have gone so cheaply. Yes, Ithaca’s cash flow will surge from this year, sharply reducing its leverage and possibly attracting more suitors. Yet that looks priced in on an enterprise value of over five times cash flow, excluding net interest charges. That valuation is above average for its peer group.

Shareholders of Ithaca, like Mr Barnum, should accept the inevitable and assent to the Delek offer, which looks a fair one. The show must go on.

[speedsgh] 06/2/2017 16:00

Apart from the possibility that they might be putting their own best interests ahead of other shareholders', I don't understand why the IAE board felt that they had to recommend this offer? Would a formal offer not have been forthcoming if the board hadn't recommended it?

[pvpower] 06/2/2017 15:57

Maybe we should get the doctor to exterminate the Deleks......

[husbod] 06/2/2017 15:57

The break payment if we accept a higher offer unequivocably shows that the Board have no intention of eliciting other offers or even favourably considering them unless they are mega which is highly unlikely.

I've sold half my holding and added in PMO and some other non-oil assets.

Seems to me you can sit on your shares in the somewhat unlikely event a counter hostile bid will be launched or sell up and put your money where you think it might have a better chance of growth. Or just keep the cash of course, spend it on wine and women and waste the rest.

[whackford] 06/2/2017 15:55

From Daily Telegraph
Delek bid to buy Ithaca Energy in $1.2bn deal sparks shareholder protest

By Jillian Ambrose
6 February 2017 • 2:03pm
A cash takeover bid for Ithaca Energy by its largest shareholder Delek Energy has sparked a shareholder protest just weeks before the start of production at its cornerstone North Sea project.

The takeover, which values Ithaca at C$841m (£517m), has the unanimous approval of the board but has also drawn criticism from a minority shareholder who claims the deal undervalues the company ahead of a boom in oil volumes from its Greater Stella field. Including debt, the deal is worth $1.24bn (£1bn).

Ithaca’s shares climbed over 10pc to 119.2p in London this morning after Delek won over the Canadian oil company with its C$1.95 or 120p a share offer, well above the target price pinpointed by analysts at C$1.60.

[edmundshaw] 06/2/2017 15:47

And that 120p is dropping like a stone as the Canadian dollar falls against the pound. I have strong doubts that Delek will get away with this.

[speedsgh] 06/2/2017 15:25

Stocktube: Ithaca Energy Inc bid "way too cheap", reckons oil analyst -

[bountyhunter] 06/2/2017 14:42

Delek only hold 19.7% so it's not game over if other major shareholders do feel the same way

[monomono] 06/2/2017 14:36

From the FT:

However, one top 10 shareholder, Paul Mumford at Cavendish Asset Management, who holds a 3 per cent stake in Ithaca, questioned the timing of the deal and said it was on the “low” side.

Mr Mumford said the management team, led by Les Thomas, a former executive at oilfield services company, Wood Group, had put Ithaca in a “healthy”; position.

“Ithaca has a bright future on the basis that it has already reduced its cost of production from over US$40 a barrel to US$20 a barrel, and from this month will increase average production from 11,000 barrels a day to 20,000 as the Greater Stella field comes on stream,” he added.

Mr Mumford told the Financial Times he would “think hard” about an offer closer to 150p per Ithaca share — a 25 per cent premium on the recommended offer — but stressed that he would like to keep hold of his shares in the company, given the potential presented by the Stella development.

==============

May be that other major shareholders feel the same way too and would prefer to hold on to their shares.......until they offer more.

MM

[rich73] 06/2/2017 14:31

Similar to o&g1, sold 50% of which 60%/40% in SDX/ENQ (both new). Fully loaded in HUR since July and still very excited about their prospects. SDX researched last week and seems very promising and good time to get in with the new COP assets to underpin the share, but with a big drill coming up. The rest will probably be diversified into ftse dividend payers in due course.

Being in this since 2012 and very disappointed not to see £1.5 as my exit having held my nerve through some hard times :-(

[oilandgas1] 06/2/2017 14:27

The Canadian and American audience ..

Israel's Delek offers $524M for Ithaca Energy


Please add your comments!

[oilandgas1] 06/2/2017 14:20

Buy curious,

I agree, I think key shareholders ( who will influence the bidding process) with 3% or more were easily looking at 1.20 with Production going from 9kbopd to 25kbopd in feb17 and probably at least 1.40 to 1.50 by 2017 H2 with POO around $60 and debt being paid down.