I3 Energy Share Discussion Threads

[spawny100] 08/7/2021 07:40

Circa 1.4% divi. Nothing to get too excited over yet.

[goodday1] 08/7/2021 07:39

Haha, 0.16 of 1 penny.Lol

[johnyee 7] 08/7/2021 07:31

Is that a 16p divi?

[goodday1] 08/7/2021 07:30

Presentation https://i3.energy/wp-content/uploads/2021/07/20210708-i3-Corporate-and-Transaction-Update-vF.pdf0.16p a share Divie

[the patriotic irishman] 07/7/2021 22:33

"need to reject the deal and stop dilution"


LOL that's a bit like telling Turkeys to vote in favour of Christmas 😂 😂 😂

[mikro1] 07/7/2021 21:12

Of course it hurts to see a 30% fall in 2 days - it hurts me as a holder. But there's no doubt it's a good deal and that the share price will rebound swiftly.

[1choip] 07/7/2021 21:04

Need to reject the deal and stop dilution

[inever] 07/7/2021 19:54

Management need to stop doing deals for at least six months and deliver the revenue they say they've bought, the special dividend, the interim and final dividend. Get that share price up to the level it should be and stop diluting at undervalued prices. Buying undervalued assets with undervalued shares neutralises the benefits for existing shareholders.

[ark87] 07/7/2021 17:58

Many of us i'm sure where suspicious why Cenovus sold so cheap if such a good asset? This enlightening post by "Kraftdinner" on ceo. ca/ ite?39cec0afe1ea explains this very well and makes me think another incredible deal has been done.

"With regards to your question about why $CVE would sell these properties. Some others above did give partial answers, like non-core assets, etcetera, but the real reason is stated in their 1Q Report. Someone mentioned above Husky and the merger that the two companies did during Q1 2021. This caused the CVE debt to rise to $13.3B at end of Q1. This is what Cenovus stated and will give colour to why they sold this and other assets recently.

Deleveraging will remain a top priority for Cenovus in 2021. The company will continue to allocate virtually all free funds flow to its balance sheet in pursuit of its net debt target of $10 billion. At current commodity prices, Cenovus expects to approach its net debt target by year end. The company will continue to prioritize the balance sheet even after reducing net debt below $10 billion, with a longer-term target of $8 billion."

[inever] 07/7/2021 17:45

Wasn't the issue price 11p?

[fandagle] 07/7/2021 17:35

Difficult to say if the falling knife has landed yet? sentiment looks very low indeed, this could spiral further down, perhaps not what the BOD envisaged.... The BOD defo gave their pals a heads up to allow a safe exit and of course primed them for the 12p buy back, not criminal, but certainly leaves a rather bad taste...reminiscent of Black friday...

[glavey] 07/7/2021 17:12

Well, suck that up won't y'all.

[pretax2] 07/7/2021 16:52

View from across the pond thanks to MoneyWagon (shares my sentiment)

------------------
10:10am ITE NICE LOADING ZONE HERE~CHANGING OF THE GUARDS MOVING
up to the next increment of 10's....Building a strong support above @20-205...getting ready to climb to @30's. Yall know that's gunna happen. You just gotta be an investor that understands........ it is MM that tells the story and moves the share price over time. Everybody on the penny stock market is looking for that fast money...but oh toooo tooo often bar hopping is NOT good investing advice.

If you can add down here..so be it congrats...if you are locked and loaded sit like a fox...sp is breathing very healthy.
Its a simple transfer of wealth here @20.....profit takers are allowed to take their profits and the NEW blood holds our hands moving up to the @30's.

This sumer is going to be GREAT for almost all companies....sheesh they have been locked up and shut down for so long they are just beaten the gates down to get to work ......for a great 2021 summer!!!

------------------------
10:20am ITE ASKS FROM @225 TO AS FAR AS THE EYE CAN SEE NO BULL FOOD
YIKES!!! yes we are at Changing of the Guards but but that level 2 is naked from @225...allll the way to @28..Sit like a fox and let those shares move into strong hands. That is the task at hand....getting the profit takers OUT!!

[spangle93] 07/7/2021 16:47

Edgein
You mention a couple of times "I could see this at least doubling our divi"

Unless I'm mistaken, you mean the pot available for dividends (30% of FCF, which is as a result of the new production, significantly higher). 80% increase in production, roughly the same oil/gas split of boe.

But they've issued a huge new tranche of shares too, so I don't see the divi/share changing much.

Have I interpreted you correctly, or do you actually see dividend/share rising?


Also, in their twitter, they announce
"NTM production 18470 boepd (47% oil and NGLs)"

Do people think that is the genuine NTM average, including decline over the year, or the start point of the NTM?

[alistair4444] 07/7/2021 16:27

7th July 2021

i3 Energy to expand Canadian production as it agrees on asset acquisition

The company continues to build and grow material and diversified production business, highlighted chief executive Majid Shafiq.

i3 Energy PLC - i3 Energy to expand Canadian production as it agrees to asset acquisition

i3 Energy Plc (LON:I3E, TSX:ITE) has inked a C$65mln deal to expand its footprint in Central Alberta, acquiring assets producing around 8,400 barrels of oil equivalent per day from Cenovus Energy Inc. As well as strong free cash flow, the deal is expected to deliver extensive operational synergies, predictable low-decline production, and a large reserve base with multi-year development inventory. It is raising £40mln to support the transaction, via a share placing and a retail offer via the Primary Bid platform. After an accelerated bookbuild process, the company confirmed that it will issue 363.7mln new shares at a price of 11p per share, marking just a 3% discount to the 15-day average closing price.

"We continue to execute on our business plan which is to build and grow a material and diversified production business through the most efficient deployment of capital, whether that is through exploitation of opportunities within the company's existing portfolio or through accretive acquisitions such as this one,” said chief executive Majid Shafiq.
Ryan Heath, president of the i3 Energy Canada subsidiary, added: “i3 Canada is extremely pleased to have entered into the acquisition from a top-tier veteran participant of the Western Canadian Sedimentary Basin.
“The inherent synergies of the transaction, being immediately evident and robust, will most certainly expand with time to further enhance field efficiencies and cash flow throughout our central Alberta core area, to the benefit of the company and its stakeholders."

As part of the transaction, i3 has entered an escrow agreement with Cenovus. It is paying C$65mln (US$53.7mln) in cash for the package of assets. The acquired assets include production of around 8,400 boepd, of which 51% is oil and natural gas liquids (NGLs), and, 79.5mln barrels of proved and probable (2P) reserves valued at US$193mln. Along with an inventory that comprises 140 future drilling locations plus 80 potential well reactivation opportunities. Altogether the inventory spans some 212,000 acres.

Also included are some 1,140 kilometres of pipelines and key processing facilities. In conjunction with the existing i3 portfolio in Canada it means that production is expected to grow by around 84%, to 18,470 boepd, which will see net operating income rise 70% to around US$75mln per year. The placing will see new shares sold to institutional investors, with the process run by brokers Tennyson Securities, WH Ireland and Canaccord Genuity. It is not underwritten. At the same time retail investors will be able to buy new shares at the same level as the placing price, via Primary Bid.

I3 noted that the acquisition and the equity raising will be subject to shareholder approval, at a general meeting slated to take place on July 28....extract - Proactive Investors article today.

[fandagle] 07/7/2021 15:06

Rather funny if I can buy below the bid price.

[imjustdandy] 07/7/2021 14:30

Picked up 50,000 at 11.9 ish . You can buy below the offer price

[goodday1] 07/7/2021 14:30

Aim following the Canadian pre-market.Let us see how long to stabilise it over the other side of the pond.

[muddyfox0151] 07/7/2021 14:13

Canadian market open soon interested to see how TSX responds to today's News, hoping for a retrace upwards once all the dust settles. Should of could of sold at 16p, whatever wasn't selling anyhow and here for 30p range, built up a good holding and willing to be patient. GLA

[source] 07/7/2021 14:01

Ah yes! Got you now! Thanks Edgein Regards

[edgein] 07/7/2021 13:56

Cash,

Yes, that will depend on their planned expenditure on the new assets. But as their NTM NOI has increased from US$44m to US$70m then the dividend is likely to be bigger as a result of today's increase in production. I can't see the vote going against this transaction either, cause when the assets are worth $193m and they get them for around £40m that's a good deal.

Regards,
Ed.

[cashandcard] 07/7/2021 13:06

The question now is FCF. 30% of FCF to divi's - that will surely mean a revision to what they expect to payout over the NTM. May not impact the spec-divi but will the interim and final is my guess.


Cash

[edgein] 07/7/2021 12:58

Source that's largely my point!

At the current cap of around £130m the reserves are valued at just £1/boe on the basis of 132mmboe 2P. Way too cheap! At £500m cap (50p per share ish) that rises to £3.80 or so, again when they sell their gas at about $15/boe and oil at $60/bbl+ its still cheap.

Regards,
Ed.

[source] 07/7/2021 12:46

Follow up. Where is the "£3.70-3.80/boe" from and why's it significant to use it. Seems low compared to actual Brent at $76 ish & I understand i3E costs per barrel are actually v low to produce. Thanks & sorry to be a pain, but trying to get my head around how big this new acquisition is (I think it's huge!)My only concern is why Cenovus sold it here. They're a very good & savvy o&g player themselves so has got me cautious. Regards