Rockrose Energy Share Discussion Threads

[dunderheed] 10/5/2020 12:33

Absolutely so am I dragon - and I think they will fare far better than a lot of other oiler's however I currently infer, they are drawing down on their FCF as we "speak", that's all.
I wonder how many FCF bargains there are in this mkt as well and again, I'd probably keep hold of those for the mmt. rather than sell at "knockdown" prices?

To repeat though - I am very confident that RRE will weather this downturn and come out relatively stronger in the end so think we are both very much aligned and appreciate all of your inputs to date as they have been very accurate and useful!

[dragon35] 10/5/2020 12:07

Yes I agree that cash will go down but if you can acquire a cheap producing asset that gives immediate FCF to the business in this price environment then it will be very accretive for the company and help sustain its growth. I'm just happy they have no debt and a big cash pile as they will be the first mover on higher O&G prices.

[dunderheed] 10/5/2020 11:46

Exactly so that is quite a chunk of the "cash" values that are often quoted.
The reality is cash will go down this year regardless of hedging imho unless we see oil price rising quite significantly toward the end of year - which also could still happen.
I am not de-ramping at all, just pointing out this possible scenario in these strange times?

[dragon35] 10/5/2020 11:40

Yes they have capex but that will be part funded by FCF as they still generate margin at these prices and the hedged production takes that into account so not all the cash is needed as a reserve for capex. That way it will preserve cash for immediate use if an opportunity arises. They need circa $100m cash in hand to be buffered against FCF issues I think, but my calcs might be off.

[dunderheed] 10/5/2020 11:32

dragon - I really hear what you are saying and am a quite big private holder of RRE but the cash should really be taking into account the capex commitments for the next 18 months.
Let's be honest unless AA can do another Marathon type deal we could be stretching things in the lower price environment we find ourselves in for a big deal in the near future. Better to batten down the hatches and see where we are in 6 months time rather than keep on talking about cash "now"?

All imho and dyor of course!

[dragon35] 10/5/2020 11:29

If you take the view that all their liabilities are covered by tax paid history and the cash (now backed by a bond) then the balance sheet is very good. Most liabilities are long term so the cash has more value right now for acquisition or otherwise. USA rig count down and opec agreed a 12 month cut of 8mboepd so next 12 months will see a big gain on RRE if the above is correct - imo.

[fardels bear] 10/5/2020 10:33

Well the truth to that, is that we don't know yet, do we?

[danawinner] 10/5/2020 09:29

I paid my £9.99 to access the shares conference and wish I hadn't. The AA interview was pretty good but didn't tell me anything new. Don't forget that Peter brailey of sheer profits made a sell recommendation because share price was overvalued on the 27th of March when we were at £6.78. Great advice eh?

[rayrac] 08/5/2020 16:44

And a few others!

[shares_investor] 08/5/2020 15:39

RockRose is presenting online tomorrow which may be of interest to those here -

[costax1654x] 07/5/2020 15:03

You're Holiday is in your head my friend!Is called insanity!Go and see a doctor,and make sure you don't loose your labouring job on a construction site!

[costax1654x] 07/5/2020 15:01

The scum is deramping....from ramping 2 days ago

[fardels bear] 07/5/2020 13:53

We're fine as long as she stops ordering me about all of the time. Right now she's asleep on a sun lounger. Magic..

[robo175] 07/5/2020 13:22

I thought she was having an affair with the corporal lol

[dunderheed] 07/5/2020 13:10

Ah ok - I "hear" a lot of people start validating* their relationships when they get retired and this can lead to a lot of break-ups or very separate lives being led?









* thinking wtf did I ever see in this f'er!!

[fardels bear] 07/5/2020 13:07

Stripes, bloody phone..

[dunderheed] 07/5/2020 13:05

Corporal's strip?

[fardels bear] 07/5/2020 13:02

Not unless she leaves the bloody corporal's strips off.

[fardels bear] 07/5/2020 13:01

May WTI contract expires and rolls into June contract. There are currently over 60mmbo on board tankers at ports in the USA or en route. And they struggled with what to do with the April contract.

[dunderheed] 07/5/2020 13:01

FB - not doing it with the wife - that sounds ominous?
I take it you were joking buddy?

[robo175] 07/5/2020 12:48

19TH FB, is this something to do with the Alfa?

[fardels bear] 07/5/2020 12:22

At present I'm practising being retired in the sunny weather. Decided that when I retire properly I'm not doing it with the wife. I'll be vack in at some point but I'm certainly siting to see what happens on the 19th before I buy anything.

[robo175] 07/5/2020 11:11

Yes well done FB, are you returning at some point?.