I3 Energy Share Discussion Threads

[fandagle] 08/7/2021 19:30

Key word is developing, if it develops then yes....

[ark87] 08/7/2021 19:18

Wanna have friendly bet on that Fandagle? £200 donated to charity of others choice. You win if this hits 8p in next 2 weeks. I win if it doesn't. How confident are you?

[fandagle] 08/7/2021 18:47

Perfect storm developing, Saudi & UAE ready to turn the Taps on full, this will take the share price here to 8p in the coming weeks....

[edgein] 08/7/2021 15:54

Jail,

You're welcome fella, it does say they're now back at 21c again which is 12.15p eqv but you can keep track of it yourself at the following:



Regards,
Ed.

[fandagle] 08/7/2021 15:48

Tiiiiiiiiiiiimbeeeeer

[edgein] 08/7/2021 15:17

C$0.205 is circa 11.7p.

Regards,
Ed.

[jailbird] 08/7/2021 15:05

What's TSX price equivalent

[fandagle] 08/7/2021 14:59

Oil prices also tanking, defo 8p here soon..

[fandagle] 08/7/2021 14:50

Dropping quickly here and in Canada, will pick this up for 8p next week at this rate...Squeal like a pig Billy Ray......lol

[billyrayvalentine] 08/7/2021 13:38

"i3 Energy Strategic Acquisition and Successful £40m Placing i3 Energy has raised £40m via a placing of 363.7m shares at 11p (a 3% discount to the 15-day average closing price; announced yesterday). In connection with the placing, the company has secured a $US 53.7m strategic acquisition in central Alberta, Canada. The acquired assets are producing circa 8,418 boe/d (51% liquids) and are expected to generate circa $US 31m of cash flow (in the field, excluding any incremental corporate costs). We see the acquisition and the related placing as positive from every perspective, inclusive of all possible valuation metrics and strategically. We believe the successful placing and acquisition positions i3 Energy to grow convincingly into a mid-cap, high-growth energy company. We believe that i3 Energy will continue to re-rate over the course of 2021 as the company solidifies its standing as a premium Canadian oil & gas company.
We base this opinion on i) i3 Energy’s extraordinary track record of making value accretive deals ii) the robust cash flow being generated by the company iii) the exposure i3 Energy provides to strengthening commodity prices and iv) the depth and quality of i3 Energy’s drilling inventory, which we anticipate will be further defined over 2021. We see i3 Energy on a very convincing trajectory of shareholder value creation and anticipate that to be reflected in its forward looking share price dynamics.
Accretive: Based on our analysis, shareholders have materially gained in wealth through the company’s acquisition and successful equity placing.

Step-change in Canadian markets: We cannot understate the importance of successfully securing a high-impact acquisition from Cenovus in the heartland of the Canadian oil patch. Cenovus (CVE; TSX & NASDAQ; Market Cap $US 18 billion) is a recognised senior oil producer with a significant North American presence. The deal will be noted in North American oil & gas markets and, we believe, will raise the profile of i3 Energy as a preferred acquirer – potentially favouring entry into further value accretive deal flow.

Funding: Based on the company’s successful track record and the value it has created to date for shareholders, we are not surprised by the support shown to i3 Energy by the institutional investors who participated in the placing (the company’s last placing of £29m was priced at 5p and closed on 11 August 2020). Nevertheless, we believe it is critical to appreciate that, based on our observations, capital scarcity remains a dominant theme in North American oil & gas markets. We believe i3 Energy’s proven ability to raise funding sets it apart from the pack and makes i3 Energy a preferred counterparty for potential vendors. Although we believe the mantra “cash is king” remains true across the commodity cycle, it takes on a literal accuracy in a winner-takes-all context where the number of motivated sellers is grossly imbalanced relative to the limited number of funded acquirers.

Scaling up: We see only positive benefits from increased scale for i3 Energy. An increased market cap and cash flow base will only add institutional appeal to the investment opportunity. At the operational level, we believe that scale will bring efficiency gains. The significant increase to i3 Energy’s cashflow resulting from the acquisition will allow the company to plan more extensive drilling programs. Importantly, we believe that i3 Energy is entering an operational scale where efficient debt finance starts to become available in Canada. Taking a mid-term view, we see a lot of scope for prudently levered debt funding to turbo charge growth.

Low-decline production: The acquisition will increase i3 Energy’s production by circa 8,418 boe/d of low decline, stable production. Pro forma the acquisition i3 Energy’s production of circa 18,470 boe/d will consist of oil 19%, NGLs 28% and natural gas 53%.

Synergies: i3 Energy anticipates increasing the acquired asset’s cash flow by up to 20% via synergies – a considerable uplift that would add further to the attractiveness of the acquisition.

Low break-evens: The company estimates that its pro forma breakeven commodity price equates to $11.05/boe (exclusive of royalties) – low by any standards.

Drilling locations: The acquisition adds circa 143 net drilling locations to i3 Energy’s drilling inventory. We anticipate i3 Energy’s drilling/development strategy will take shape over the near-term. The more drilling locations available to the company, the higher the requisite economic thresholds will be for well locations to warrant capital allocations for drilling. We believe that i3 Energy has a breadth of locations across its core regions and that the acquisition adds further to the company’s growth potential via drilling.

Workovers: In respect of the company’s two major Canadian acquisitions, to date, we have been surprised by the gains made by i3 Energy through low-cost workovers, suggesting the acquired assets were low-priorities and starved of even modest capital allocations. We therefore believe it is highly noteworthy that i3 Energy has identified a total of 80 wells as targets for reactivations/workovers.

Acquisition Metrics: Based on i3 Energy’s estimates, next twelve month’s cash flow was acquired for 1.73x, production was acquired for $6,381/boe/d and 2P reserves were acquired for $0.68/boe. We believe that it is a reflection of the peculiarity of this commodity price cycle that bottom of the cycle acquisition metrics can be achieved even as many commentators foresee a mid-term energy supply crisis.

Overlap: The acquired assets directly overlap with i3 Energy’s existing production base in Central Alberta (one of i3 Energy’s core areas of operation from which it is producing circa 3,090 boe/d). As a result of the transaction, the company anticipates material scope to both reduce unit operating costs and to increase third-party tariffs. The acquisition of largely operated production (83%), a network of 1,140km of operated pipelines and key processing facilities strengthens i3 Energy’s strategic presence in the area.

Valuation: We recently placed our 24.5p fair value estimate for i3 Energy under review for an upward revision. We remind investors that 15.7p of our fair value estimate related to the company’s Canadian operations. i3 Energy’s strategic acquisition adds further impetus for us to increase our fair value estimate.

Conditional: The placing and the acquisition are conditional on shareholder approvals and other customary conditions."

[fandagle] 08/7/2021 12:24

Should drop some more when the markets open across the water, come on baby get below 11 for your Daddy.....

[edgein] 08/7/2021 11:25

SOS100,

Good interview again. Interesting that Graham thinks that through cost savings they may be able to increase the NOI from US$75m to US$80m, then we get Majid chipping in that we could be close to 20k boepd by year end. Lots of news to come as expected, more small acquisitions being looked at too. All good stuff, all helps the divi and the share price going forward.

Regards,
Ed.

[jungmana] 08/7/2021 11:11

This company is going places and imo on track to multibag from this level. Look 24 months ahead not 24hours.I hold about 700k shares which is small compared to some here and I intend to ride this for the long term

[78steve] 08/7/2021 10:58

I think people thought this was going to keep on rising and rising but obviously not so people need rethink and make decision whether its worth staying put and whether price will keep rising and rising for future...

[eringael] 08/7/2021 10:31

Seems the acquisition has upset a few who possibly wanted to exit around end august hoping FO and dividend would be sorted Having listened to Graham on the Proactive it makes sense why they have executed a great dealThe news has also attracted quite a few idiots on the thread and a few holders who may have been lucky enough to sell at the top and now want a lower entry

[goodday1] 08/7/2021 10:22

You are boring, mate,Bank your capital & enjoy the ride.I let the others give the thumb down.Lol

[the patriotic irishman] 08/7/2021 10:15

The spread 11.60-11.70
I can sell 150K for 11.6802.
What does this tell you????


I dunno what your post is intended on telling others but its telling me that you're just another 'day trader' who is incessantly trying to pump up their book whilst probably doing the exact opposite 😉



2nd July 07:21 Farm-out for the next serious leg up. 'HOLD TIGHT UNTIL THEN'


2nd July 09:28 I have taken my original investment cash out




# HODL 😋

[pretax2] 08/7/2021 10:10

Fandangle
You mean you hope it will fall further.
Hope gets in the way of thinking clearly.

[fandagle] 08/7/2021 09:43

Think it will fall far more in the coming weeks, keep my gunpowder dry...

[jailbird] 08/7/2021 09:40

Not a lot my friend Seen that trend the way down from 16p

[edgein] 08/7/2021 09:37

Jail,

Yes that's a possibility for sure. They did say in several interviews that they'd look at acquisitions that change the dial in terms of speed of growth. I'm here for the revaluation of the company, divis are just a bonus, and if that means acquiring assets on the cheap for future growth then I'm all for it. Increasing the acreage around the Clearwater and Simonette etc are perfect ways to do that. Also the company mentions things like installing new pipes so they can pump more production and lower transportation costs etc so these acquisitions mean more than just the initial flow rates and reserves.

I don't mind dilution like some do if it makes a material difference to the company. The upside in terms of additional deve drill locations makes the acquisition and dilution look like a no brainer. So sure any more £40-100m acquisitions in this area for similar economic metrics I'd more than welcome. It would be a bit better if the share price started to reflect the growth though, then complete. I.e. a 20-25p share price VWAP would be more realistic for the next one. That would still be cheap for 18500boepd+ and 132mmboe. Who knows we may have cracked 20kboepd by then. I certainly wouldn't rule out additional small acquisitions from cash too. Lets wait and see, there's some very active months ahead just from what the company has told us.

Regards,
Ed.

[goodday1] 08/7/2021 09:37

The spread 11.60-11.70I can sell 150K for 11.6802.What does this tell you????Lol