Seplat Energy Share Discussion Threads

[loglorry1] 07/3/2022 10:53

This is the reason hxxps://nairametrics.com/2022/03/04/nnpc-to-meet-exxon-mobil-on-march-17-over-deal-with-seplat/ I only found out this am after I bougth a load more! Oooops.

[whentobuy] 07/3/2022 10:27

The domestic supply obligation for gas saw a 15% decline in price (only applies to 30% of gas). Also 9-12 months delay on ANOH supply. However, there's no analyst appraisal back to price on these. It looks over sold for this news only?

[strummerjon] 07/3/2022 09:37

Anyone able to explain why this has dropped so far this morning ( apart from the obvious, sales>buys! ), especially since the price of crude has been rocketing since the Ukraine crisis?

[zengas] 04/3/2022 17:21

Net closing adjustment of $560m less to find against the $1.36b purchase price from an effective date of 1/1/21 to /1/3/22. Will be interesting to see what the Seplat Exxon net cost will be come sign off.

March 3, 2022, by Melisa Cavcic

Oil major ConocoPhillips has sold its oil and gas assets in Indonesia for $1.36 billion to Medco Energi, an Indonesian energy firm, after reassessing its asset portfolio in a bid to pursue energy transition opportunities, which would allow it to amass assets with lower GHG intensity, such as LNG.
ConocoPhillips reported on Wednesday that it had completed the sale of the subsidiary to Medco Energi for $1.36 billion, with an effective date of 1 January 2021. The firm also explained that, after customary closing adjustments, net cash from the sale is approximately $0.8 billion,
The sold assets produced 51 thousand barrels of oil equivalent per day (MBOED) during 2021 and had year-end 2021 proved reserves of approximately 70 million barrels of oil equivalent.

[zengas] 02/3/2022 14:00

I think the actual purchase price by mid year could be $400m less than the headline $1,258m.

Saves announced purchase of 22.5k bopd and pipeline interest from Exxon & Petronas in Chad for $658m (with a potential extra $50m to pay for oil up to $80/b over 2 years to Exxon only). It is anticipated to give a downwards adjustment of $321m whch is from 1/1/21 to closing at 30/6/22. (slide 4). This was announced when oil was in the $80/b range in December 2021.

At the least, half the downwards adjustment will be from the production ie $160m.
For Seplat, given there's about 4x as much oil production in the Exxon Nigerian asset and a similar time period from 1/1/21 to completion in half 2 this year, it wouldn't surprise me that $400m+ may be taken off the $1258m base price.

Current net debt end '21 = $426m. Possibly sub $400m by June this year from the existing assets then a net purchase cost to Exxon of $850m = overall net debt $1.25b range which has to make it very cheap when completed.

[km18] 28/2/2022 14:54

Seplat Energy is engaged in oil and gas exploration and production. Its segment is the exploration, development and production of oil and gas related projects located in Nigeria. The group optimised revenue by 38% to $733m, hence resulting in a robust operating profit of $250.7m. Consequently, it implies that operating profit in 2021 rallied from a loss of (£11.8m), which in turn led to an EPS growth of 48.4%, thus yielding ample returns on investments for market participants. Given the attractive cash generation of $394m, the firm managed to fund its operating, investing, and financing activities effectively, illustrated by the concise P/FCF ratio of 5.9. Despite the plausible financial position and operational performance, the company’s P/E ratio stood at 6, signifying that Seplat Energy is undervalued with respect to the energy sector and is expected to surge in value, since the energy sector is currently trading at a P/E ratio of 12.1x.



Keep up to date with WealthOracle AM

[zengas] 28/2/2022 09:56

Sepl Revenue results this am end 2021 = $733m. Net debt $426m.
Acquisition costs $1283m - expect a reduction of about $200m due to consideration effective from 1/1/21.

Overall net debt becomes circa $1.5b. (Other $300m contingent consideration would be paid from share of oil above $70/b and non material as it works out at just paying $1-$2 per barrel extra from income above that $70/b mark.

2P OIL reserves = 650 mmbls (945 mmboe incl gas).
Oil production rises to about 115,000 bopd (146k boepd incl gas).
Would expect revenues to be $2+ billion.

Overtakes KOS/TLW at a stroke with i expect $500m - $1b less net debt yet 1.5 - 2X production and 2 - 4.5X reserves.

588m shares @ 110p = £650m m/cap.
Already paying $58m/yr dividend worth 7.4p/share.
Transformational deal so fair value should become £2-£2.50 (£2.50 = £1.47b m/cap).
Plus effect of having $500m minimum of less net debt is worth another 50p on the share price in comparing to TLW/KOS.
===============================================

Kosmos listed in London Aug 2017 with 389m shares and £5.20 = £2b m/cap + $1.28b net debt. Now 452m shares F/D and results out this am.

From 110 mmbls P2 in 2017 and today = 580 mmboe P2.

Year/Revenue/Production/Net Debt with (£ M/Cap in brackets).
2016 $310m/18,500 bopd/ $1.32b
2017 $578m/30,500 bopd /$1.28b (110 mmbls P2) (£2b m/cap)
2018 $886m/50,500 bopd/$2.12b (£2.8b m/cap)
2019 $1.5b/68,000 bopd/$2b (£2.1b m/cap)
2020* $804m/60,800 bopd/$2b (£2b - £350m/cap)
2021 $$1.32b/70,000 boepd/$2.59b (£1.53b m/cap)

------------------------------

Tullow from end 2016 with 914m shares , 2017 = 1386m shares and currently 1.43b shares in issue.
Also 550 mmbls reserves/resources end 2016 to 220 mmbls P2 now.
Year/Revenue/Production/Net Debt with (£ M/Cap in brackets).
2016 $1.27b/67,100 boepd/$4.8b (£3b m/cap)
2017 $1.7b/89,000 boepd/$3.5b (£2.7b m/cap)
2018 $1.9b/88,200 boepd/$3.1b (£2.43b m/cap)
2019 $1.68b/86,800 boepd/$2.8b (£989m m/cap)
2020* $1.396b/74,900 boepd/$2.37b (£425m - £140m m/cap)
2021 'Expected to be $1.3b/59,200 boepd/$2.1b' (£745m m/cap) .
"Oil production guidance is 55 to 61 kboepd 2022"
==============================

OilPrice.com historic Brent chart used . April 2017 $55/b with an average Nov 2017 - Jan 2020 of approx $65/b. Substantial crater in 2020 with recovery to and stayed over $65/b since March 2021. (2020* = Price crash/revenue & m/cap range).

[loglorry1] 28/2/2022 09:18

Yes bought Friday early doors too. I can't believe it was availabel at such low prices before the news. I did pay 101 for most of mine though but still a bargain.

[robizm] 28/2/2022 09:13

I bought Friday at 94p. These will have twice the production of Tullow oil less debt and are still on a lower market cap

[loglorry1] 28/2/2022 08:53

The acquisition was transfomational in my opinion. They will be absolutely printing cash now at these oil prices. Everyone is looking at Ukraine and I think a lot of people have missed the consequences here.

[robizm] 28/2/2022 08:48

Still cheap with acquisition

[krall] 28/2/2022 08:17

Year end numbers out.

OML 40 and Sibiri (predrill 80 milj barrels) looks to deliver :)

Eland's OML 40: four wells drilled at a total gross cost of US$60million, now delivering 15.5 kbopd (gross)

•

Sibiri exploration on OML40 drilled to TD in February with initial indications it has encountered eight oil bearing reservoirs with 353 ft of gross hydrocarbon pay, net pay of 229 ft; further data acquisition and analysis are underway

[krall] 25/2/2022 10:05

Debt funding is at the level of the target
and non-recourse to Seplat Energy plc

▪ Equity to be funded from existing cash
resources ($274m as at Q3 2021) and
through undrawn RCF ($350m available)

▪ No requirement to access equity capital
from the market via a capital raise

▪ Final consideration will be net of lockbox.
Working capital and other adjustments
reflecting net revenues since effective date
of 1 January 2021

▪ Dividend policy remains unchanged

[krall] 25/2/2022 09:58

hxxps://www.seplatenergy.com/media/wojc2c5e/seplat-acquisition-of-mpnu-presentation.pdf

[robizm] 25/2/2022 07:58

Hopefully I can get in early before rise

[krall] 25/2/2022 07:46

The consideration implies an attractive EV / 2P metric of $2.9/boe, with significant gas upside potential

186% increase in production from 51 kboepd to 146 kboepd

o 170% increase in 2P liquids reserves, from 241 MMbbl to 650 MMbbl

o 14% increase in 2P gas reserves from 1,501 Bscf to 1,712 Bscf, plus significant undeveloped gas potential of 2,910 Bscf (JV: 7,275 Bscf)

o 89% increase in total 2P reserves from 499 MMboe to 945 MMboe[1]

[krall] 25/2/2022 07:45

Huge for Seplat -

25 February 2022

PROPOSED CASH ACQUISITION

of

Mobil Producing Nigeria Unlimited ("MPNU")

by

Seplat Energy Plc ("Seplat Energy" or the "Company")



Lagos and London, 25 February 2022: Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, is pleased to announce that it has entered into an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited ("MPNU") from Exxon Mobil Corporation, Delaware ("ExxonMobil") (the "Transaction"). Completion of the Transaction is subject to Ministerial Consent and other required regulatory approvals.



Transaction summary

· Seplat Energy Offshore Limited, a wholly owned Nigerian subsidiary of Seplat Energy Plc, has entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1,283 million plus up to $300 million contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date

· The Transaction encompasses the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria, which is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd (W.I.) in 2020
(92% liquids)



Transformational impact

· The Transaction will create one of the largest independent energy companies on both the Nigerian and London Stock Exchanges, and bolster Seplat Energy's ability to drive increased growth, profitability and overall stakeholder prosperity

· Based on 2020 pro forma working interest volumes for Seplat Energy and MPNU, the transaction delivers:

o 186% increase in production from 51 kboepd to 146 kboepd

o 170% increase in 2P liquids reserves, from 241 MMbbl to 650 MMbbl

o 14% increase in 2P gas reserves from 1,501 Bscf to 1,712 Bscf, plus significant undeveloped gas potential of 2,910 Bscf (JV: 7,275 Bscf)

o 89% increase in total 2P reserves from 499 MMboe to 945 MMboe[1]

o Includes offshore fields with dedicated, MPNU-operated export routes offering enhanced security and reliability



Supporting Nigeria's energy transition and objectives of the Petroleum Industry Act

· This is the first transaction to be announced since the Nigerian Government's recently ratified Petroleum Industry Act ("PIA"), and supports its key objectives

· Seplat Energy is fully committed to working with the Nigerian Government to bring these strategically important national assets fully into Nigerian ownership alongside NNPC

· Development of MPNU's gas resources will support the Federal Government's objective to achieve a pragmatic, progressive and just energy transition for Nigeria


Details of the Transaction

· Seplat Energy will acquire the entire share capital of MPNU from Exxon Mobil Corporation, Delaware (USA Incorporated), with an effective date of 1 January 2021 for a consideration of $1,283 million, subject to lockbox, working capital and other adjustments at closing relative to the effective date

· The Transaction agreement also includes potential additional contingent consideration of up to $300 million in total, payable over the period 1 January 2022 to 31 December 2026, and contingent upon average Brent crude oil prices exceeding $70 per barrel and subject to MPNU's average working interest production exceeding 60 kboepd (JV: 150 kboepd) in such calendar year

· The consideration implies an attractive EV / 2P metric of $2.9/boe, with significant gas upside potential

A strong operating portfolio

The MPNU portfolio primarily consists of:

· A 40% operating ownership of four oil mining leases (OMLs 67, 68, 70, 104) and associated infrastructure (NNPC is the 60% partner)

· The Qua Iboe Terminal, one of Nigeria's largest export facilities

· 51% interest in Bonny River Terminal and Natural Gas Liquids Recovery Plants at EAP and Oso

· It does not include ExxonMobil's deep-water assets in Nigeria

· MPNU will operate as a standalone subsidiary of Seplat Energy and upon closing and following receipt of requisite regulatory approvals, Seplat Energy will align MPNU with its overall strategic goals and ESG objectives

[robizm] 25/2/2022 07:06

Big takeover

[sunbed44] 12/2/2022 21:13

Is there a withholding tax on dividends here the same as DEC with the divi being paid in $

[currencytrader1] 09/2/2022 15:29

US in talks with Iran to lift sanctions. Millions of barrels of oil could hit the market soon...

[sunbed44] 03/2/2022 13:45

Why so so so many small trades here every day

[currencytrader1] 01/2/2022 17:38

I've got a feeling an Rns will be dropping in soon. Feels like leaky information is about.
110p target in short order.. GLA

[seatank8300] 01/1/2022 16:03

hxxps://tbiafrica.com/2021/12/31/seplat-exxonmobils-1-5bn-acquisition-deal-suffers-setback-as-partner-pulls-out/

[deandavison245] 30/12/2021 11:34

Some of the operators essentially, identified security as a core issue for the oil companies as product losses through the pipelines are now so massive that it is affecting their bottomline and the country’s revenue projection from crude oil export. Huge quantities of products are daily stolen by individuals and organised cartels of criminals.



The Navy and other security agencies that are supposed to protect the waterways and the companies’ operations are either looking the other way, or colluding with syndicates of oil criminals to steal this all-important national resource. It is now a huge and thriving business at the expense of the country.

This is part of the reason many major oil companies are divesting from the country. To prevent this huge losses to the oil companies, they have largely resorted to using barges to transport oil and the process of building barges and allowing their usage by the government is huge and cumbersome. The cost element to that is; it dramatically increases cost of production to these companies