Share Name Share Symbol Market Type Share ISIN Share Description
Sdx Energy Plc LSE:SDX London Ordinary Share GB00BJ5JNL69 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  -0.25 -1.45% 17.00 38,404 12:50:29
Bid Price Offer Price High Price Low Price Open Price
16.50 17.50 17.25 17.00 17.25
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 40.14 -9.36 -6.71 35
Last Trade Time Trade Type Trade Size Trade Price Currency
14:20:42 O 7,275 17.12 GBX

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Date Time Title Posts
23/6/202023:43SDX Energy8,381
09/3/202008:17SDX Energy at the UK Investor Show3
23/7/201808:13SDX Energy (SDX) One to Watch on Monday -
18/7/201812:39SDX Energy (SDX) @ Watch Zone -
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Sdx Energy Daily Update: Sdx Energy Plc is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker SDX. The last closing price for Sdx Energy was 17.25p.
Sdx Energy Plc has a 4 week average price of 17p and a 12 week average price of 14.25p.
The 1 year high share price is 28p while the 1 year low share price is currently 11.50p.
There are currently 204,706,373 shares in issue and the average daily traded volume is 128,821 shares. The market capitalisation of Sdx Energy Plc is £34,800,083.41.
shakeypremis: Matchmade I agree the share price here doesn't generally make any sense. But that's where an irrational market gives you great opportunities (if you're patient). I appreciate people have different time horizons. I am 32 and can wait and have been invested here since 2017, slowly increasing my holding. Yes, heavily underwater but the current price is very tempting. Although I want to see further drilling success at SD first and I hope that SDX don't try to acquire something with a placing at the current low market cap. The share structure is heavily waited to a few large holdings, namely Waha Capital's holding through their investment vehicle SDX SPV Ltd. They haven't sold a single share in years (over ever) and hold nearly 20% of the company. Similarly with Ingalls and Synder who nearly 19% and haven't sold a single share in years (or ever in fact). The low free float here allows for wild price swings, usually to the downside but smarter money is slowly buying up all the stock. Most of the Egypt CAPEX money wasn't actually spent on drilling but on SD CPF and associated infrastructure CAPEX. A lot of the best opportunities do take many years to be realised by the market. I do think that if SDX don't find more gas in Egypt with the next few drills then they have a little bit of a problem there going forward. SDX are drilling in Morocco to increase their reserves and increase certainty of supply for their customers and potential new customers. If you've only got reserves for a year or two then potential customers may be put off. If you can say we've got your gas for 5 years and we expect to find more then that's much better. The gas they find is worth US$12/mcf. It's a cash-cow in terms of margains. Yes more customers would be better but if you can find the gas then that in itself does increase your NAV and also gives you options for the future. Maybe a bottling facility. Who knows. There is huge demand for gas in Morocco. PW really did smash the share price. His lies and over-exaggerations really hurt the investment here but didn't really change anything fundamentally. He walked the plank along with Waha's then CEO who was on the board of SDX. I personally believe they both mislead Waha - who I believe really control the company along with Ingalls (I don't know the entity behind the Ingalls holding) - and they both got the boot. Waha seem to be in this for the long haul and their current CEO on the board of SDX now. The company are project to have US$40m in cash end of 2021 and given the current malaise in the O&G market - which I believe will continue and get worse - as a debt free company generating significant free cashflow, SDX are very well placed to capitalise and pick up a great asset or two or farm in to something on the cheap. Patience grasshopppers, patience. This is a great O&G company to have an investment in at this time in history.
matchmade: I used to be invested in SDX but I have sold up because I've concluded there is simply no logic to its share price. I could do a month of detailed analysis to convince myself there is value in the share, and I could wait 3, 4 or 5 years for that value to be discovered by the market, and I've found I was just wasting my time and killing my capital. This share doesn't behave like any "normal" stock where improved profits lead to an improved share price, or a probable quick-to-market new discovery can clearly be seen to feed through to the bottom line because there is strong demand for the product. Even if you ignore oil and gas discoveries, at the very minimum you would expect that the market valuation was at least the same as the value of assets plus probable forward-looking earnings for, say, a year, less debt and estimated asset depreciation and the cost of a drilling programme. But if you do the calculations, this bears no relation at all to the actual share price. SDX does look massively undervalued, but very few major investors are interested in small O&G companies nowadays, so the share price seems to me to just follow the adrenaline rushes of small private investors, while the MMs cream off fat profits on the very wide bid/offer spread. The rot really set in with the over-promising by Paul Welch: developing the Egyptian gas took far, far too long, and there simply hasn't proved to be a sufficient market in Morocco for natural gas. You can throw money down drill holes and find lots of small, quickly-used-up gas fields until the cows come home, but even with the high prices on offer, you can't build a business if there aren't enough commercial customers or any domestic gas distribution network to speak of. Why is SDX even drilling in Morocco at the moment, when there are so few customers? Why is it doing expensive drilling in Egypt, when the price on offer from the Egyptian Government is so low, the taxes so high, and it takes so long to deliver the necessary infrastructure? It is generating good income, but low profits because most of the income is spent on new drilling rather than, say, buying real existing assets that could both generate income and offer scope for expansion.
shakeypremis: Considering today saw the lowest share price in the company's history and the current price is barely above that ATL, I have absolutely no idea. It basically can't go bankrupt and therefore can't really go to zero, as it has no debt and no liabilities it can't pay from cashflow, BUT that doesn't mean the share price can't go a heck of a lot lower.
swiftnick: Yes, the share price touched 44.25p on 6 January 2019 and closed the year at 22p, so it more than halved in a year in which production increased by 12%.A disappointing market reaction so far to this morning's update. Hopefully success with the drill bit will finally galvanise the share price back into life.
thomas11: Interesting quote "2019 was a successful year for SDX, with all key metrics being ahead of expectations, success with the drill bit and our key South Disouq development project completing on time and on budget" The Share price dropped 35% from 40.5p in Jan 2019. I think we could without another successful year. SDX has been through a shocking year resulting with the dismissal of the CEO. I believe it may have turned a corner and looking a lot better but why not be honest with people. This shocking gloss on the facts turns me off and reduced by confidence in investing here. GLA/DYOR etc
tournesol: Rossannan I wouldn't argue with your assertions that PI's can be short sighted and that share price weakness can present opportunities. BUT you say that timing is everything and you imply that the share price at SDX currently provides just such an opportunity. If you look back at the chart of the share price, you will see that:- a) Your optimistic statement could have been said at any time during the past 12 months and would have been proved wrong every time. b) There is a clear and well established downwards trend. It is not a temporary thing, it is not a moment of weakness or a random blip, it has been playing out for 12 months since May 2018. c) The share price has fallen from 73p to 29.5p - that's a loss of of 60%. Recovering that loss will now require a gain of 150% just to get back to where it was a year ago. It is entirely possible that SDX will eventually blossom and bear fruit and will indeed recover to its previous heights and even surpass them. But it is also possible that it will lose another 60% from here. Or even more. The most important lesson I've learned in 35 years of investing is that King Canute's approach simply does not work. If the tide is against you, you get nowhere by resisting it. Much better to get out of the way and wait for it to turn. If SDX's fortunes turn and they start to make progress and the markets start to drive the price upwards, those who jump back in at that point will gain just as much benefit as those who have allowed themselves to be submerged - and they will have avoided the risk of drowning in the meantime. If they are really lucky and/or skillful they will have invested somewhere else whilst waiting, so will have done even better. I bailed out of SDX a few weeks ago. I have avoided the last downwards lurch AND I've made money elsewhere. And I feel that I am in control rather than waiting with a sense of helplessness and hoping that things turn round.
gmr64: Daily Mail Article - SDX Circle squares the North Africa equation for oil and gas minnow SDX Energy Even the largest of companies make mistakes with acquisitions, no matter how much due diligence is carried out. So SDX Energy’s management must have been a little nervous when it acquired Circle Oil two years ago. Increasingly, though, it is looking like a masterstroke for the AIM-listed oil and gas group The acquisition was at a time when Brent crude oil prices had slumped from $100 a barrel to under $40 and there was little interest in the oil and gas sector generally, let alone in a small operator focused on Egypt and Morocco. Trepidation was such that SDX picked up the business for $30million, which was 39 per cent of the value of its debt at the time and an amount its lenders were happy to take. As part of the deal, SDX also acquired $18.3million of working capital - comprising $1.9million of cash, and $16.4million of ‘receivables less payables’. Circle brought with it production assets and substantial reserves but there were issues of payment in Egypt and uncertainty over the political situation in North Africa. But SDX was confident and said it would use the Circle assets as the base to build production up to a 25,000 to 30,000 barrels of oil equivalent daily rate of production that would put it comfortably in the middle bracket of oil producers. Eighteen months on and those terms look especially generous, something borne out by the fact SDX has not looked back since it completed the deal. Of course, the recovery in the Brent price back up to $70 a barrel has helped and is something the company could not have predicted, but in things it can influence SDX Energy has been energised. Paul Welch, the firm’s chief executive, has said the first half of 2018 was exceptionally busy for exploration drilling, with the second quarter alone seeing 23 wells drilled. Of those, 20 wells were successful and the benefits are now starting to show through in hard numbers. Interim results to June revealed a 35 per cent rise in net revenues as output rose to 3,234 barrels of oil equivalent per day as wells drilled during 2018 started to come onstream. Revenues were $24.4million, up from $18million in the same period a year ago, while netback or the amount that feeds back to SDX after all costs, taxes, royalties and so on jumped to $32.91 per barrel from $22.51. As a result, earnings excluding exploration (EBITDAX) more than doubled to $16.2million. Net cash generated from operations was also impressive. Inflows amounted to $20.3million compared to $11.1million with $25.2million in the bank at the period end. The drilling pace will ease in the second half, which should further strengthen the balance sheet as cashflow is running currently at $3.5million-£4million per month. Production since the half-year has risen to 4,400 barrels per day but Welch is forecasting 8,000 barrels per day attributable to SDX by the year-end. Marketing efforts are also paying off. SDX has picked up French car giant Peugeot as a customer in Morocco on a ten-year gas contract, where prices have followed crude and started to edge higher. Indeed, the only thing not to have picked up recently is the SDX share price, which has left Welch scratching his head a little. Trading conditions in Egypt have improved markedly he says, with the issue of receivables easing notably in the first half. Money outstanding to SDX halved and authorities in the country have pencilled in a complete clearance of all money owed. As a result of the improving conditions there is more competition in assets in Egypt as the country becomes a more attractive oil destination, SDX, though, is now looking from a position of strength. Research house Edison expects SDX’s year-end cash to be in the order of $28.7million, but it is 2019 when the big numbers start to land. Edison expects 2019 revenues and profit to climb by 55 per cent and 175 per cent to $86.7million and $51.1million respectively. Net cash, meanwhile, will have risen to $56.5million even after $37million of additional capital expenditure. That’s a lot of firepower to do deals with, even in a tightening market and SDX must have plenty of credit in the bank for the way it has developed Circle’s assets. Edison has a share price target of 92.7p per share compared to the current SDX share price of 59.5p. At that levels, the group’s market value is £123million or about 2.5 times 2019 cashflow. Even if oil and gas producers are currently being rated below frontier or wildcat explorers, that looks too much of a discount.
potential: Edison has a share price target of 92.7p per share compared to the current SDX share price of 59.5p.
11_percent: Newman on Share Prophets "It can be difficult just buying and holding a share at times, especially when nothing is really happening with the share price and many of its peers are seeing large rises. You could of course argue that you should have picked one of those instead and that you’ve made the wrong choice, but if your original decision was backed by the fundamentals, and nothing has changed on that front, then often the best thing to do is just to wait, or even to add more. That very much seems to be the situation with SDX Energy (SDX), a company where I hold shares myself and have been adding more recently. The share price has been bouncing around the high 40p to mid 50p range for months, and has been unable to breakout even when there has been positive news. But for me it now looks even cheaper than when I originally bought in last autumn, as the fundamentals have actually improved a fair bit. It has had a number of successful drills recently, with wells being put straight into production and adding significant amounts to daily production. Alongside that we also have higher oil prices coming into play, which should make its operations even more profitable, plus gas prices in Morocco for the domestic market which SDX serves are strong and there is surplus demand. Whilst the gas in Morocco has plenty of potential, a lot of existing production – as well as upside potential – comes from its operations in Egypt, with North West Gemsa, where it hold a 50% interest, averaging over 4,500boepd. This field also makes up a decent chunk of the 2P reserves – they stood at around 3 million boe net at the end of 2016, from a total 0f 9.3 million attributable to SDX, and we should soon get an update for the figures as at the end of 2017. Gemsa is expected to continue to produce at a similar rate during the coming year, and with operating costs of just $8/barrel and its oil selling at just a 10% discount to Brent, it should generate good levels of net cash flow. Its other producing field in Egypt, Meseda (50%), had been producing around 3,300boepd gross in the first half of 2017 before facility upgrades were carried out, but with the additional work planned on that field, we could see that figure double. This field also still has plenty in the way of 2P reserves to extract – 10.9 million barrels, as at the end of 2016. There is also plenty going on at its 55% owned South Disouq gas field, and it is hoped that production will get underway in the first half of this year – although that is dependent on negotiations with the government over gas prices. The development would initially target at least 50 million scf/d (gross) and would be directly connected to the nearby national gas pipeline. Currently the company only realises just over $1/mcf though for its gas, which is a fraction of what it gets in Morocco. There is also large potential upside from further exploration at this field, as current gross contingent resources stand at 227Bcf, with an additional 11 million boe. It would also be quite easy to bring these resources online as and when they are proven up, as not only is there a gas pipeline, but also ones for oil and condensate. In Morcco, the drilling campaign at its Sebou field (75% working interest) has been producing some good results – KSR16 tested at 8.43MMscfd; 7.52MMscfd for KSR15; and 6.4MMscfd for KSR14 and the wells are being put straight into production and the company is on track to meet its targets from this licence for this year. That being daily gas sales of 10-11MMscfd, as current infrastructure does limit this – there is no local or national grid in place - but new customers are being added all the time. That would compare very favourably to the current situation which has been averaging 5.5MMscfd at a price of around $9/mcf – and not only would that double, but a MOU is in place with Porcher to increase the price to $12/mcf for a five year period. In terms of this infrastructure in general, things have moved very slowly in recent years, but there now seems to be a renewed urgency from Morocco to become more self-sufficient in terms of generating its own energy in the future – currently a lot of its energy is imported. For instance, a proposed $4.6 billion investment in a natural gas plant is now looking more likely to actually go ahead. Whilst this doesn’t directly affect SDX at this moment in time, it does point to the likelihood that money will be spent on more infrastructure in the future, which would certainly help to solve the problem of actually getting the gas produced to customers, and increasing sales at the same time. SDX is already in the unique position of owning 75% of the only privately owned pipeline in Morocco at the moment, and you could argue that more infrastructure would reduce that commercial advantage. But it is also restricting what the company can sell, and given that a lot of supply currently comes from very expensive bottled gas, I don’t see it as having a negative impact – plus it is still some way off and I would expect SDX to be a much larger company by that stage anyway, based on the progress it is making. There is plenty of exploration upside as well – over 12Bcf of unrisked gas potentially – although the recent drill at Gharb Centre, ELQ-1, produced a disappointing result. That drill location was based around old 3D seismic data, and the company is now in the process of getting new seismics shot to better identify future drill locations. So as you can see, not only is the company already selling oil and gas, but it also has the potential to increase production rapidly at a time when the price, and the market in general, is stronger. At the current share price of around 50p to buy the company is valued at £100 million, and I would argue that the current financial situation supports that. For a start the company had nearly $58 million working capital available at the end of 2017 – with over $30 million of that being cash – and is debt-free, plus it is generating cash flows in the region of $2 million per month. The latest results for the quarter up until the end of September 2017 showed that the company made $10 million revenue and recorded a net profit of $4.4 million, but a lot of that is down to adjustments made as a result of the Circle Oil asset acquisitions. I would be more interested on how the company performs moving forwards, and how the capital expenditure on drilling and improvements to its fields that is has been making translates into increased profits in the future. In terms of the share price and lack of movement, I suspect that there is a background seller and has been for some time, as any sort of rise and volume seems to result in larger blocks being dumped. But I’ve seen this before on many other shares, and when that selling pressure does finally clear, it is often accompanied by a nice rise. There is still risk here, but I believe that the growth potential moving forwards is sufficient to justify a higher market valuation than the current one, so I will remain invested for the longer term unless something fundamentally changes."
brasso3: I think the SDX share price has bottomed out around 45p. Looks like we are now starting the climb back into the 50's.
Sdx Energy share price data is direct from the London Stock Exchange
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