Enteq Technologies Share Discussion Threads

[simon gordon] 29/9/2014 15:36

Paleje,

Smallie KBC did a webinar the other day in which the oil price/capex was discussed at the end in the Q&A session, starts 21 minutes in:



KBC have oil economists in one sub division.

[simon gordon] 29/9/2014 12:40

FT - 26/9/14:

US shale oil and gas producers are victims of their own success

By John Dizard

Shale oil and gas producers have, arguably, saved America’s industrial future and global strategic position. They are not doing quite so well for their investors.

Consider the share price of the most innovative exploration and production companies in the northeastern US, our new Texas. Range Resources’ shares have declined by 18 per cent this year, Cabot Oil and Gas is off by 17 per cent, and Chesapeake is down nearly 7 per cent. One would think developing a nation-saving set of miracle technologies would pay better.

The E&P’s collective problem is that they are victims of their own success in producing more oil and gas for fewer dollars than almost anyone would have thought possible.

Six months ago, it seemed as though the E&P companies would finally have a chance to make some serious money, or at least more than they have to spend to get natural gas out of the ground. The rise in gas demand thanks to the polar freeze gave the industry some hope that US prices would start to rise to the $5/million metric British thermal units level.

But no. Oil prices have been weak both in global markets and in the US, but not weak enough to induce deep cuts in the E&P oil-directed drilling budgets. The “associated” gas produced by those shale oil rigs has flooded the US domestic market this year, more than offsetting declines in conventional gas production and older shale gasfields. So the E&P companies could not stop themselves from producing gas at less than the US marginal cost of production.

The E&P companies’ revenues were further squeezed because much of the new natural gas and liquids they have developed was at the wrong end of the country’s existing pipeline system. For the past seven decades, US pipelines have mostly taken oil and gas from the southwest and transported it to the northeast.

The unexpectedly large and rapidly developed Marcellus and Utica fields disrupted the economics of this expensively developed system.

Because new pipelines need extensive planning permissions, long term financing and scarce skilled labour, the E&P companies have had insufficient capacity available for their product. There is so much competition for access that gas and liquids can only be sold at steep discounts, or “basis differentials”, to the generally quoted Henry Hub pipeline price, when they can be sold at all.

Continued...

[p1nkfish] 19/9/2014 09:20

interesting read on potential demand.

[p1nkfish] 18/9/2014 07:09

30% CAGR on EPS and TSR in equal proportion - looks very reasonable option plan to me and good for all of us.

"The initial grants from the PSP were made on 17 September 2014 with a vesting date of 1 April 2017. The performance conditions relate to the Group's Earnings per Share growth and Total Shareholder Return in equal proportion, and in order to achieve the full benefit of the award a 30% compound annual growth rate for each of the financial years ending 31 March 2015, 31 March 2016 and 31 March 2017 in each of these measures will need to be achieved. The consideration payable for these awards is 1p per ordinary share of 1p each in the capital of the Company ("Ordinary Shares").


Martin Perry (CEO) and Raymond Garcia (COO) were each provisionally granted, subject to the performance conditions and rules of the scheme, a maximum of 538,462 Ordinary Shares. David Steel (Finance Director) was provisionally granted, subject to the performance conditions and rules of the scheme, a maximum of 147,692 Ordinary Shares."

[1gw] 17/9/2014 14:47

Incredible period of flatlining. I hadn't checked this board for a while and was surprised that (1) there were quite a few new posts highlighting positive developments (esp. director and institutional buying) and (2) with all the relatively good news highlighted here these haven't moved.

Originally bought a few back in April. Had no trouble buying some more just now at about the mid price (32.64), so clearly some supply around - maybe they are still working through a big order from one of the early holders.

Anyway like the story, like the bulletin board, prepared to hold for a while.

Edit: And according to the contract note the trade was a market order executed on ICAP and doesn't even show up as a trade in a lot of the standard packages (e.g. advfn).

[zog] 16/9/2014 11:19

Nice summary by Private-Punter above – the article highlights several reasons why Enteq's fortunes might be about to change.

Another factor to note is that their main drilling rig market in the U.S. has improved during 2014: a good proxy for this is the Baker Hughes Rig Count, hxxp://www.bakerhughes.com/rig-count
These weekly figures provide a useful measure of market activity for drilling service companies and they show that the number of North American rigs has been increasing steadily this year. There are lots of reports/comments on the BHRC figures if you Google, one example (including plots of rig numbers) is here:-
hxxp://marketrealist.com/2014/09/oil-gas-rig-additions-boost-last-weeks-us-rig-count/

In fact, Enteq themselves tweeted on the subject back in August, see "U.S. rig count now double 2009 figures"

Looking at the recent BHRC figures shows that the number of active rigs in the U.S. is up by 10% on this time last year. More importantly for Enteq’s business, the combined number of "horizontal and directional" rigs is up by 17% year-on-year and is now above its peak in early 2012.

Enteq increased like-for-like revenues by 24% during the year to March 2014 in what they described as "a stable North American drilling market"; it will be interesting to see how their revenues perform now that the North American rig market is expanding again.

[closetinvestor] 16/9/2014 08:13

Bought into initial position yesterday too.

[madmix] 15/9/2014 17:45

rivaldo,

It's worth noting that in addition to the 506k volume on the LSE today, there was another 208k traded on ISDX (some of which were mine).

So that's 1.2% of the shares in issue changing hands. Overhangs don't last forever. ;-)

[rivaldo] 15/9/2014 15:36

Excellent article, cheers hastings. I hadn't noticed the Abu Dhabi links of Target Wells before.

Another 456,000 shares traded so far today. Talk about (hopefully!) selling at the bottom...

[hastings] 15/9/2014 14:31

Some thoughts that may be of interesthttp://www.cambridge-news.co.uk/Business/Private-Punter

[cwa1] 15/9/2014 11:08

Decent buying volume but still plenty available even online. Must be a fairly decent sized line being offloaded IMHO.

[cwa1] 12/9/2014 16:22

Great minds think alike?

12 September 2014

Enteq Upstream plc

(the "Company")

Director Shareholding

The Company received notification on 12 September 2014 that Martin Perry, Chief Executive Officer, acquired on 12 September 2014 50,000 ordinary shares of 1p each in the Company ("Ordinary Shares") at a price of 32.7p per Ordinary Share. Following this acquisition, Mr Perry has an interest in 958,802 Ordinary Shares, representing approximately 1.63 per cent. of the Company's issued ordinary share capital.

The Company also received notification on 12 September 2014 that David Steel, Finance Director, acquired on 12 September 2014 20,000 ordinary shares of 1p each in the Company ("Ordinary Shares") at a price of 32.7p per Ordinary Share. Following this acquisition, Mr Steel has an interest in 68,581 Ordinary Shares, representing approximately 0.12 per cent. of the Company's issued ordinary share capital.

[jaws6] 12/9/2014 12:38

Marben joined you with small to start here.Thanks.

[cwa1] 12/9/2014 12:31

OK, OK!! I gave in and had a few as well. Everyone else seems to. Happy now? ;-)

Seems to be plenty of stock around.

[glasshalfull] 12/9/2014 12:01

...and I'm also back into the stock with a purchase this morning.

Was waiting for the catalyst of a trading update before taking the plunge and felt yesterday's AGM statement v promising.

In good company I see...

Regards,
GHF

[woodcutter] 12/9/2014 12:00

i added yesterday too. I've a few now so will watch the chart now before adding further.

WC

[marben100] 12/9/2014 10:57

Am following the other buyers here and have doubled up my modest holding today @ 32.6p.

[p1nkfish] 11/9/2014 20:07

Am a little overweight here now but tempted.
It looks better now as a business than at float but with substantial discount.

[rivaldo] 11/9/2014 19:01

Cheers sturmey. Amazing how often the institutions dump at the bottom, only to see the very same share instantly jump at least 25% once their own overhang is cleared :o))

It shouldn't be forgotten that NTQ had around £12m net cash at 31st March - this against the current £19m m/cap.

I also took a few more today, and may add more if all goes well.

[sturmey] 11/9/2014 15:58

Rivaldo,

The 25,000 trade at 32.50p at 13.56 (recorded as "unknown") was my purchase.

My broker reports that the shares are well-offered with the likely culprit being one of the institutions which is selling down. The most likely candidate is HARK which notified a drop below 3% recently.

Sturmey

[kannerwas] 11/9/2014 15:56

Well I have just taken 40k of them so we will soon find out.

[rivaldo] 11/9/2014 13:53

There are currently 50k shares available online to buy at a decent discount to the offer price at a 32.68p. Interestingly there's also demand for the shares at 32.2p. Hopefully once that 50k disappears we might see some price rises.

[p1nkfish] 11/9/2014 13:16

Expect management expectations to be better than market so they have a margin of safety. Especially in a small company like this.

Reads very positively.

[rivaldo] 11/9/2014 13:08

A rather encouraging AGM statement just released - perhaps the most interesting part is that last year there was no trading statement at all...

Market expectations are for 2.37p EPS (with 2.92p EPS forecast for next year), and hopefully management expectations are at least the same or better as per usual:



"Enteq confirms that year to date trading had been in line with management expectations. Notable new business has been achieved with customers in China and the Middle East as well as a continued broadening of the customer base in North America.

"The commercial release of a new down-hole data transmission (Pulser) technology has been successful, further increasing the range of Enteq Measurement While Drilling products."

The Company is pleased to confirm that all resolutions proposed at today's Annual General Meeting were duly passed."