Sdx Energy Share Discussion Threads

[shakeypremis] 19/8/2021 18:37

Cannot remember. A lot of money. I just don't see how they increase cash on the balance sheet or increase production and turn this around given current rates of CAPEX spend per year. They always spend all of their free-cashflow, most of it on Morocco. If they could stop drilling there for a year that would free up maybe US$10m of cash to add to balance sheet but with only 3 years of reserves in Morocco I don't really think they can stop. SD they have to keep drilling or production will decline from 2023 onwards. They have no big targets in SD any more, maybe they find another to go for but at present they don't have one and the likelihood is any single target will fail anyway. I just don't see how they can really grow in the near term organically any more and that leaves inorganic growth but the share price is so pathetic they can't raise and they don't have the cash for very much as they keep spending it! Debt financing for Egypt may be out of the question as they don't really have stable confirmed cashflows there from SD past 2023 at present. What are they going to do exactly?

[neo26] 19/8/2021 17:16

ShakeyIndeed it is, current mkt cap is only 24m pounds, they have 6m pounds in bank.18m pounds enterprise value. They have zero debt..Absolutely insaneHow much did the gas plant cost again?

[rettah] 19/8/2021 17:07

Q2 results should be next week.

[shakeypremis] 19/8/2021 16:53

Even I don't understand the current valuation. It's pretty crazy. As you say, ~£18m enterprise value. Company needs a new comms strategy and new/improved future vision too. Market completely hates this stock.

[neo26] 19/8/2021 16:45

KaosInvestors need to take a deep breath..Current npv to 2p reserves is $100m, enterprise value is only $25m.Production is 5800boepdEnough said...Company is cash generative, over $30m cash flow per annum.

[shakeypremis] 19/8/2021 15:53

Jeez, some people just don't want to hear anything remotely negative. I didn't even say it was a large holder dumping!

[wigwammer] 19/8/2021 15:39

What a silly post. You evidently have an agenda here. Filtered.

[shakeypremis] 19/8/2021 15:20

Could be a larger holder dumping at any cost to get out of this and preserve what little capital they have left.

[kaos3] 19/8/2021 15:18

I said that at 24 p lol

[wigwammer] 19/8/2021 14:37

PJJ on filter - another pointless oxygen sucker :)

[pjj71] 19/8/2021 14:26

the widow maker carries on its wealth destruction... new management needed to end this capex calamity!!!! unfortunately with shareholders interests behind salaries this will continue to sucker in the 'value' seekers until the lights are turned off...

[ashkv] 19/8/2021 12:47

Almost a zero risk investment at current prices - might go down / but could easily double from these levels on just a management update re change of strategy!!!

[ashkv] 19/8/2021 12:46

SDX Bloomberg Sell Side Analyst 12m Average Target Price 40p- As of 11 Aug 2021

Stifel: Analyst -> Chris Wheaton, - Recommendation -> Buy. Target Price -> 50p. Updated -> 5 August 2021
Auctus Advisors: Analyst -> Stephane Foucaud, - Recommendation -> Not Provided. Target Price -> 35p. Updated -> 16 July 2021
Peel Hunt: Analyst -> Matt Cooper, - Recommendation -> Buy. Target Price -> 35p. Updated -> 5 July 2021

[wigwammer] 18/8/2021 18:08

The thing I really don't get is the assumption that management and assets are sat on an intransigent treadmill. With only a few years meaningful operating data points, there simply isn't the history here to conclude anything of the sort. Given just last years EBITDA equates to more than the current enterprise value, and they have conservatively at least 4 years left of reserves in the bag, you don't have to be a valuation wizard to work out it's probably highly undervalued. Nor do you have to believe management have to jump through hoops to get some of it realised. ATB

[neo26] 18/8/2021 17:53

Pjj71Name some stock with better value, then your statement can be validated.Easy saying it..

[wigwammer] 18/8/2021 16:36

SDX has grown top line tremendously over the last few years, they are entirely right to use internal cash flow to search for additional resource and work their infrastructure harder, they have made it abundantly clear that post the capex intensive plan for 2021 they are open to returning cash flow to shareholders, even to repurchasing shares. Not all of the exploration is going to work out - that comes with the territory, I, afraid. But 0.35x tangible book?? Yer not gonna get originality awards for sticking the boot in down here. ATB :)

[pjj71] 18/8/2021 15:41

as the share price history tells you the management team are simply not up to the job... they draw huge salaries by initiating drawn out capex plans... this stock should have been run as a cash cow and then sold... as i have said since 60p... so many better options for your money....

[shakeypremis] 18/8/2021 15:38

I am starting to wish we had Paul Welch back. At least he had some vision and some desire to do something and even had a decent amount of shares. Current management are in it for salaries only and next to no shares at all and won't buy any. Absolutely pathetic.

[shakeypremis] 18/8/2021 15:36

It's not worth zero. What I am trying to get at is, although unlikely at this stage, if things continue as they are and SDX don't find some way to reduce Morocco drilling costs and increase production there and also find a decent sized discovery in Egypt they are going to be in this treading water situation for years to come and may even start to eat in to cash on the balance sheet.

[wigwammer] 18/8/2021 15:26

Many of your points appear valid, shakey, and thank you for sharing them. But are you suggesting the stock is worth zero, and if not, what is it worth?

[shakeypremis] 18/8/2021 15:19

IMHO, you haven't been here as long as I have and therefore would know I wasn't a troll if you had. I am not trying to bash this stock, it wouldn't do anything and it doesn't need bashing, it's a total basket case of a STOCK, not so much company.

[ashkv] 18/8/2021 15:04

Any insight as to the 2 Wells (if I recall) being drilling in Morocco shortly?
Chance of Success and Resources targetted?
Many thanks

[ashkv] 18/8/2021 14:48

1BCF = 190,000 Barrels of Oil Equivalent
Therefore at 1.6Bcf - SDX have added enough reserves for current full annual production in Morocco

If drills come in successful later this year - that will add even more...