Jadestone Energy Share Discussion Threads

[oilinvestoral] 23/5/2025 16:30:12

I haven't posted on here for about 10 days. Made the mistake of correcting the point that 520,000 bbls DOES NOT put Net debt close to ZERO only to be referred to as being part of some duumverate of doom! Very rational! Anyway I'll leave you too it ! Jadestone to £5

[fireplace22] 23/5/2025 16:17:09

It would be good if posters only reply to the content of any particular post and not advance comments on the poster.

[nigelpm] 23/5/2025 16:11:44

but you’ve been prattling on non stop.

Quite. painful isn't it.

[fardels bear] 23/5/2025 16:10:27

Immediately jumped on? That's the kind of language that I'm used to from you now. I haven't immediately jumped on anybody. I'm not posted on here for days if not weeks but you've been prattling on non stop.

[nigelpm] 23/5/2025 16:00:24

A reminder of what I actually said as someone seems unable to read:


That's c. $39m of effective cash which puts net debt close to zero.

[oilinvestoral] 23/5/2025 13:41:30

Classic ADVFN though. Any nuance or slightly opposing opinion is immediately jumped on. This is what throttles debate and turns BBs into telegram groups where people are removed for correcting a blatantly wrong / incorrect post.

[oilinvestoral] 23/5/2025 13:28:34

I'm positive on Jadestone as the post copied from Twitter by the PM recently indicated. I'm simply "correcting the we will be debt free when we sell the oil stock" narrative. I hope that's not too offensive

[fardels bear] 23/5/2025 13:21:37

I see the duumverate of doom are still trying to outdo each other.

[winnet] 23/5/2025 12:52:34

Pughman, yes, the profit on Stag/Montara is terrible, but the point still stands: They've already declared most of the opex. The other point is that some of that inventory will be from other assets, albeit a smaller %

[oilinvestoral] 23/5/2025 12:41:36

Puhman , You raise a point that was made by one of the analysts at the call. They mentioned that Most of the 270m-360m FCF will be made in 2027 and late 2026 for the exact reasons you stated.

[pughman] 23/5/2025 12:38:39

All the inventory oil is from Stag and Montara, at these prices they've made diddly squat. I don't see any meaningful decline in net debt for the next year, with Skua to come and Malaysia planned for H1 26, which will cost $40m.

[oilinvestoral] 23/5/2025 12:30:37

Fully agree Winnet. But net debt will be nowhere near zero with that sale as the accountant stated. Which was the actual point that was missed

[nigelpm] 23/5/2025 12:10:39

Yup - of course there will be some costs still in the ledger to be paid but at a simple level somewhere around $40m will be received shortly.

[winnet] 23/5/2025 11:31:33

Well, shall we guess what the net profit number is on the inventory...

I would imagine the OPEX is already accounted for and hence declared.

[oilinvestoral] 23/5/2025 09:34:57

"which puts net debt close to zero." No it doesn't ! That's the point being made! Which has clearly been missed .

[nigelpm] 22/5/2025 21:48:56

I think an obvious point has been missed there. Of course there are costs associated with the revenue generation of 520k bbls. However, in terms of receipt of cash for the barrels - that isn't in the 30 April net debt number. That's the point.

[oilinvestoral] 22/5/2025 15:46:57

Re debt reduction: net debt reduced by just over 10 million if you exclude the exceptional contribution from Sinphuhorm sale.

All things being equal (oil price circa 70) and assuming no more disposals, I expect that we will become net cash around Q2 2026. I listened into the call and the new team (ex CFO) is very impressive. The Akatara de-bottle necking project adjustment seems to be a decent value add.

[oilinvestoral] 22/5/2025 15:35:52

It’s very worrying when people don’t know the difference between revenues & cashflow !

The 520,000 bbls in stock will categorically NOT generate “$39 million in effective cash” but rather generate $39 million worth of revenue!! There are storage , transportation , handling and marketing costs! The cash generated by those bbls will be SUBSTANTIALLY LESS than $39 million! Anyway let’s not let the facts get in the way of a good ramp !

[s34icknote] 21/5/2025 10:42:21

Just bought some showing as a sell !

[winnet] 21/5/2025 09:41:48

I wonder how much a 25% head count reduction in onshore staff in Perth will actually save. How many people do we employ? Where are they being cut from, and how did they come up with this 25% figure? Presumably another case of AI doing roles like all other big businesses...

[winnet] 21/5/2025 09:36:55

thanks...I haven't read the presentation yet...

BTW - whoever keeps downvoting perfectly normal posts of mine, please dissit, it's childish.

[dcarn] 21/5/2025 08:59:07

Stuck in storage tanks waiting to be offloaded. Offloaded as per the schedule in the presentation.

[winnet] 21/5/2025 08:54:52

nigel, I'm not an industry guy. What form is this inventory in. Is it oil stored waiting around for sale... I'm a bit confused by this figure. Why not sell it and reduce the debt?

[mount teide] 20/5/2025 23:20:24

Value Investors Look for Bargains in Oil and Gas Sector - ZeroHedge today

'Looking at Berkshire's mindblowing $350 billion cash stash.......one would think that there is nothing in the market that a value investor would find attractive.

One would be wrong: almost half of all mid- and small-cap oil and gas stocks in the US are now trading below their book values. That’s the highest level since the pandemic. And according to Bloomberg, it’s a gift for value investors worshiping the gospel of Warren Buffett and his mentor Ben Graham, who referred to these kinds of opportunities as “cigar butts.”

“We’re going to take advantage of a lot of suckers,” said Cole Smead, CEO of Smead Capital Management, who has been buying additional oil and gas stocks that are trading well below book.

Energy has been the second-worst performing sector in the S&P 500 in Q2, losing roughly 10% since President Donald Trump’s April 2 tariff announcement, as oil prices tumble due to fears of global trade wars sparking economic slowdowns and OPEC member countries boosting production to increase supply. Two weeks ago, West Texas Intermediate crude fell to around $55 a barrel, a level it touched in April and before that February 2021. It has rebounded only modestly since then and remains down about 15% for the year.

Today, shares of oil and gas companies such as Murphy Oil, Crescent Energy and Noble Corp., are trading for less than what the assets on their books are worth. That’s the classic definition of value investing, where the stock is priced at less than what the business would be worth if it was stripped and sold for parts.

At this point, 33% of Russell 3000 energy stocks are trading below their book values. The figure rose as high as 40% late last week, before the US and China agreed to a 90-day trade truce, which gave a slight boost to oil prices and energy stocks. The last time this happened, it preceded off a two-year run in 2021 and 2022 when energy trounced the market and was the top-performing sector.

A similar proportion of large- and small- Canadian oil and gas stocks have also fallen into the same range, Bloomberg calcualtes.

Smead, who is invested on both sides of the border, thinks the stocks are undervalued and poised to at least return to book value, and likely more. “I don’t need to have a rosy picture” for the energy outlook to make money trading energy stocks, Smead said.

Smead isn’t alone in buying energy names cheap. A handful of cash rich oil and gas companies have indicated they’ll repurchase their stock if it has sold off sharply. Cenovus Energy bought back C$62 million ($44 million) of its own shares in the first quarter and has nearly tripled that to C$178 million in the second quarter so far.

“The smartest capital allocation today is to repurchase shares” rather than paying down debt, Diamondback Energy CEO Travis Stice said on a May 6 conference call. “Buybacks are the right thing at these levels” as crude prices have slipped, Stice said, adding that he expects the Texas-based oil producer to increase its stock repurchase program.

Not everyone will be able to take advantage of their cheaper stock price as they don’t have the available cash. Chevron , for instance, said it will cut buybacks in the second quarter following the drop in crude. It's bigger, and higher quality peer, Exxon, however, continues to repurchase its stock with clockwork regularity as it print money quarter after quarter.

Then there is also a debate about how best to value oil and gas producers. BMO Capital Markets analyst Jeremy McCrea says book value isn’t a useful measurement for the energy sector since it can change quickly and dramatically with commodity prices. He prefers cash flow, Ebitda and reserve values, but says the stocks still are cheap based on those metrics.

“Typically, the best times to invest in the energy sector are when it feels the most uncomfortable,”; McCrea said. “And it’s pretty uncomfortable right now just given this uncertainty. That’s historically some of the better times to come into the market.” '