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Share Name Share Symbol Market Type Share ISIN Share Description
Sdx Energy LSE:SDX London Ordinary Share CA78410A1075 COM SHS NPV (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  +0.50p +1.24% 40.75p 81,917 16:01:16
Bid Price Offer Price High Price Low Price Open Price
40.00p 41.50p 40.75p 40.25p 40.25p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 29.00 24.30 11.33 3.4 83.4

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Date Time Title Posts
11/12/201813:38SDX Energy7,234
23/7/201807:13SDX Energy (SDX) One to Watch on Monday -
18/7/201811:39SDX Energy (SDX) @ Watch Zone -
16/7/201806:55SDX Energy (SDX) One to Watch on Monday -
05/7/201809:35SDX Energy (SDX) on Watch Territory -

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Sdx Energy Daily Update: Sdx Energy is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker SDX. The last closing price for Sdx Energy was 40.25p.
Sdx Energy has a 4 week average price of 40p and a 12 week average price of 40p.
The 1 year high share price is 74p while the 1 year low share price is currently 40p.
There are currently 204,706,373 shares in issue and the average daily traded volume is 315,699 shares. The market capitalisation of Sdx Energy is £83,417,847.
matchmade: Yes, the share price has tanked. Maybe there are some shareholders who had no idea the BP deal was an option before the shares are suspended, and now think the company's shares are worth less because the BP deal failed to happen. Duh. Or the MMs are marking the price down in the hope they will entice some PIs to panic sell. Or some shareholders think they should catch up with last week's general sell-off, which was accompanied by a drop in POO, even though SDX never went up with the rising POO in the first place. Or perhaps PW's announcement in the recent presentation that we are unlikely to get more than $2.65 for our new Egyptian gas has disappointed people, and they've marked the share price down accordingly, even though (again) the market has given the company almost no increased valuation in the first place for South Disouq coming online by the end of 2018. The share price is (was) virtually the same now as it was in March 2017, despite the subsequent dramatically increased POO and all the exploration discoveries and the upcoming commercial deliveries. It's as though none of it ever happened . . .
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.
tournesol: Pauliewonder The thing to remember is that you are not investing in the company, you are investing in the shares of the company. A quite different thing. (the shares are effectively a derivative rather than the primary underlying entity) It is entirely possible for companies to go from strength to strength whilst their share price goes into retreat. That is not irrational, it's because the share price is a crowd sourced attempt to predict the future of both the co and the market and the wider economy. The crowd in question is subject to mood swings and miscalculations so share prices tend to overshoot and undershoot fair value. Over the long term the oscillations tend to converge. Over the short term they can go all over the place. It should be the aim of an independent investor to buy on the undershoot and sell on the overshoot. In the case of SDX the announcement yesterday represented an under delivery by comparison with the expectations raised previously by the company's communications which now seem to have been somewhat over-optimistic. With the share price having done well over the past year, a disappointment is only going to shepherd the share price in one direction. And today people will ask themselves "has an over-optimistic mind set led to other past statements by the co being too strong? Will Morocco be as easy a success as we have been led to expect? Will production in Egypt be so easy to ramp up?". And these doubts will reinforce the downwards oscillation. I still like the underlying co and the management. I just think the investment case has been over stated and the share price has got ahead of itself. When things get back into synch I expect to be back. Good luck if you decide to practice LTBH and ignore short term fluctuations.
orinocor: yes circle were in trouble but there are a lot of o&g companies looking to buy cheap assets. Therefore there should have been a lot of interest in these assets and so circle should have got a good price. Come on guys, none of this makes any sense. Either circle have got a rotten deal or SDX have got a great one. The rise in the SDX share price says it's SDX who got the great deal and the Circle guys don't know what they are doing. I've been round long enough to know when something smells off and something's not right here.
micktrick: I've been reading that the average p/e ratio for oil & gas companies is 25.4. Given the current p/e of about 2, is it too simplistic to suggest that the SDX share price should be about 12 times higher?
potential: Cantor repeated a 'buy' recommendation and the target rises to 78p from 71p, which at the new level represents some 125% upside to the current SDX share price of 34.25p.The transformational deal will see SDX increase net production by almost 250% to 4,705 barrels oil equivalent per day. Reserves, meanwhile, rise by 64% to 12.03mln barrels oil equivalent (boe).
potential: Cantor's target rises to 78p which represents some 125% upside to the current SDX share price of 34.25p!!!
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