I3 Energy Share Discussion Threads

[ark87] 09/7/2021 12:58

Glavey, this post from ceo.ca/ite explains why. They are currently aggressively deleveraging trying to get debt down to 10 billion from 13 after massive merger.

"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."

[glavey] 09/7/2021 12:53

Why did Cenovus choose to flog this off at this time?

[fandagle] 09/7/2021 12:48

Lots of folk sitting between 5-12p range, not willing to dig into the unknown, sentiment plunging...

[fandagle] 09/7/2021 12:34

Looks as if PI’s are scunnered with these twos antics...

[eringael] 09/7/2021 12:22

I would guess a lot of retail on the sidelines in case it falls below placing etc or waiting for institutions to mess around with price for a while - I get this thinking but there is lots of potentially good news in the offing to offset any overhang - I hope ?

[spangle93] 09/7/2021 12:22

One thing that's been dialled back is the dividend payout policy.

Last year, the phrase used was "Begin issuing annual dividend between 20% and 30% of free cash flow (increasing to 40% alongside growth)

This year, in the current presentation, it's been capped "Begin issuing annual dividend up to 30% of free cash flow"

[edgein] 09/7/2021 11:45

Cash,

Yeah net backs are great and can be improved by tying in some of the currently trucked oil to infrastructure. NTM NOI around $75-80m is stunning given our current market cap. Current planned and announced spend is only a fraction of that, but we're likely to see more aggressive deve plans in the near term once these new assets are integrated into the entire beast. We've a lot of well results from drilling and re-completion this month according to the recent presentation. I'm amazed volume isn't zooming up here, perhaps market is waiting for acquisition completion RNS after the meeting for deal approval or something. It does have a feeling that its only a matter of time before it pops again.

Regards,
Ed.

[cashandcard] 09/7/2021 11:31

For those wondering how this will potentially impact cashflow/divi, this from WHI yesterday:

-------------------------------------------------------------------------------->>

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.

------------------------------------------------------------------------------>>

Look at the estimated B/E price once they combine and drive synergies!


Cash

[pretax2] 09/7/2021 11:19

To get deal done quickly.

[goodday1] 09/7/2021 11:18

My ideas on how #i3e is currently moving. Notice the new bullish channel that has broken out of the historical larger macro downtrend. ?????twitter.com/SwazersC/statu... #markets #StockMarket #swazcharts #AIM #TRADINGTIPS #trading #FTSE #StocksToWatchhttps://twitter.com/swazersc/status/1413430781825802240?s=21

[78steve] 09/7/2021 11:16

If share price should be 20p now why was placing at 11p ?

[bigpecs] 09/7/2021 10:33

Topped up, but showing my buy in red as a sell and agree this share should be double it's current price

[1choip] 09/7/2021 10:28

Not because of placing, share price should in 20s by now.

[goodday1] 09/7/2021 08:24

LolBy the looks of it, he missed it.Without news & after ex-dividend may get some weakness.However, news coming all the time & from many directions.Gl to all & up we go.

[hotchillideals] 09/7/2021 07:51

Don't wait on the sidelines too long, you might miss the boat

[edgein] 09/7/2021 07:49

Well it closed in Canada as no change 12.4p eqv, so we're still playing catch up.

Regards,
Ed.

[glavey] 09/7/2021 07:33

It's sandals weather.

[uncleoswald] 09/7/2021 06:40

Current price close to the bookbuild price of 11p.
Fill your boots.

[pretax2] 08/7/2021 20:52

Do you see plane vapour trails? Rarely. The world is only just awaking from the pandemic. When it does, there’ll be a massive demand on oil. There a limit to how much SA can open the taps.
Meanwhile the oil price is already recovering.

[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.