Rockrose Energy Share Discussion Threads

[dragon35] 20/4/2020 11:51

Yes that's my point!

[costax1654x] 20/4/2020 11:31

All North Sea is Brent

[dunderheed] 20/4/2020 10:37

WTI may futures under a tenner ($) a bbl at mmt is it not?

[dragon35] 20/4/2020 10:19

It also depends on the type of oil and the market you are selling into. There is a reason RRE gets a premium to Brent! I am just glad RRE are not linked to WTI as the USA oil market is really going to suffer due to the blend of oil and expensive debt based operating profiles they run over there.

[costax1654x] 20/4/2020 08:34

It all depends on oil prices

[newkotb1] 20/4/2020 08:18

Dragon, agree storage is not an immediate issue. There are appox +700 VLCC, each can hold 2mmboe, in use atm are circa 80. The world is running out of storage, but only the cheap type, that said we know US still have plenty of SPR space. Saudi and Russia along with RRC will act this week if they think they need too, imo one or more will. The US rig count dipped to 529. There were 1,012 rigs at work a year ago. Texas alone seen an 8% fall on last count. So re-balancing of the market is happening. atb

[ammu12] 20/4/2020 08:17

If it does I'll buy more.I thought you said 250?

[costax1654x] 20/4/2020 08:01

Will go below 600 soon

[costax1654x] 20/4/2020 07:47

Oil is collapsing again...no storage in a week or two

[costax1654x] 20/4/2020 07:46

You better check the oil prices

[dragon35] 19/4/2020 20:52

Storage is not really the issue because the opec cuts are all about balancing that out. The issue is that demand and supply (with the cuts in place) are neutral so until demand picks up the cuts will do nothing more than hold price here. With economies starting to very slowly reopen the bottom should be forming on oil over the coming weeks. Then it's a case of waiting for demand to outstrip supply for a massive spike in oil price. Just my opinion and I am sure there's lots of counter arguments to my view.

[robo175] 19/4/2020 18:25

Don't have a clue what your saying, filtered lol

[costax1654x] 19/4/2020 17:12

....if you noticed...soon no storages for oil!Just saying!!!!

[robo175] 19/4/2020 16:15

The company’s abandonment costs are down by $5m to $25m and unit opex has also been trimmed to below $30/bbl and its abandonment half-life has been extended from 2028 to 2030 which has the effect of full tax relief on all abandonment expenditure at a rate of at least 40% given it is fully covered by tax paid history.

Stick that in your pipe and smoke it costax.

[ammu12] 19/4/2020 15:32

Costax, share price will track oil price simple as.If poo rises tomorrow share price will and same when poo drops. Doesn't really matter what you think about decommissioning cost etc

[burtond1] 19/4/2020 14:13

Interesting comments from Malcyhttps://twitter.com/tmsreach/status/1251860351169241089?s=21

[newkotb1] 19/4/2020 14:06

dragon, absolutely correct, buy now and without a doubt POO will be substantially higher in 12-24 months, the Saudi's and Russian's will ensure that imo. Having held through the fall and bought more on dips, never in my wildest nightmares would I have thought RRE would go sub £5 (pre Marathon deal), but she did and many lucky investors were able to jump aboard. I would be more than happy for RRE to do another RTO deal .... AA will be on the acquisition hunt that's for sure, just a matter of when not if ...Remember RRE currently trading at 65% DISCOUNT to cash in the bank.....atb

[dragon35] 19/4/2020 13:15

You are right on oil and gas prices but that applies to the whole industry not just RRE. When US shale fails (which it is right now as rig count is down around 400 from 600) and capex scale back hits then oil supply bottoms and the up cycle begins. This is a case of buy now sell later if you believe O&G prices will return to $50+ within next 12 months or so.

[robo175] 19/4/2020 13:13

Macy

RockRose had its finals out this morning, delayed as a result of the FCA moratorium but to have a clean set of accounts out on day 1 is a credit to them and gives comfort that the balance sheet etc are in good nick. So, with adjusted EBITDA of $97.9m being ahead of the whisper and net operating cash flow of $100.6m along with good news on both capex and opex as well as cash in the balance sheet RRE is, despite current obstacles, looking in good health.

Cash is $375.5m of which $59.7m is restricted and well able to cover the progressive dividend policy outlined by the company, accordingly they confirm the 25p payment previously announced making 85p for the year. As for capex the company announce a fall of $80m or 40% to $120m, a bigger fall than previously indicated. In addition the company’s abandonment costs are down by $5m to $25m and unit opex has also been trimmed to below $30/bbl and its abandonment half-life has been extended from 2028 to 2030 which has the effect of full tax relief on all abandonment expenditure at a rate of at least 40% given it is fully covered by tax paid history.

Production for the year was 13,886 boepd with a pro-forma number of 19,356 boepd including Marathon, again in line with guidance. The expenditure cuts announced, whilst expected to affect production growth somewhat this year are not expected to have a material impact of the company’s reserves, currently 61 mmboe of 2P and 21 mmboe of 2C reserves. All this time the company has managed to reduce CO2 emissions by some 18%

These RockRose figures were mainly in the marketplace but unsurprisingly there were a few pleasant surprises, the one I think is most pleasing is that the company has stress tested the numbers and comes out with a figure of $18 p/b at which the business runs given the harshest of environments, every which way RockRose seems to be in the extreme upper echelon of companies in the sector.

Chairman Andrew Austin is always on the lookout for deals even when the sun shines, at this stage in the oil cycle I’m sure that he is running the slide rule over a number of opportunities…More after tomorrow’s conference call if appropriate.

[costax1654x] 19/4/2020 12:35

Beware of newkotb....he appeared here a few weeks ago!!!I have a few years here!

[dragon35] 18/4/2020 21:07

The basic error was your advice as it's completely one sided. Why not explain to him how TTH works and how the net liability is circa £200m if the information provided by the company is correct? They should do their own research regardless, but you should also give a balanced view to be fair to them.