Serica Energy Share Discussion Threads

[oilinvestoral] 07/2/2024 10:26

I couldn't think of a worst acquisition than Deltic! (Well may be ORC or PMG)! The last thing we need is another North Sea asset or company acquisition! The egregious EPL has all but eaten up our previously high cash position (over half a billion dollars) ! We need to diversify internationally! Another UK acquisition and that will be the straw that broke the camels back ! The UKCS is completely uninvestable under the current tax regime! We need to be in Norway or even further afield!!! Simples

[tigerbythetail] 07/2/2024 09:22

The downside of the director purchases is that they are clearly not in a closed period - so no acquisition or other deal imminent.

[nigelpm] 07/2/2024 09:02

On the subject of Deltic that would be a great acquisition for Serica.

[monet] 07/2/2024 08:55

stemis Sorry misread your message.

[melton john] 07/2/2024 08:53

Just Monet's impression of what you said perhaps, lol

[stemis] 07/2/2024 08:44

Monet,

? That's what I said

[melton john] 07/2/2024 08:33

topped up at 1.855 first thing, left limit buy last night.

[nigelpm] 07/2/2024 08:26

I think it's a wider vote of confidence than that - unlikely the Directors would buy on that scale if they were aware of anything untoward - as I noted on trading statement whilst it wasn't particularly great there was nothing to concern.

[bountyhunter] 07/2/2024 07:58

Yes Delt is looking good with 25% of Selene and a free carry thanks to the farmout to Dana announced this morning.

[ashkv] 07/2/2024 07:54

BH you beat me to it - Great to see the new Captains buying into SQZ!!!

Deltic might be a good entry point for a momentum ride up - As Penascola discovery farm-out is next in line / likely imminent...

[stemis] 07/2/2024 07:50

Further confirmation, I'd suggest, that the company isn't planning to cut the dividend

[bountyhunter] 07/2/2024 07:41

Good to see the Chairman and SID both buying shares.

David Latin

Chairman

6 February 2024

117,255

183.7274p/sh

0.041%

Malcolm Webb

SID

6 February 2024

16,367

183.2917p/sh

0.021%

[oilinvestoral] 06/2/2024 19:52

Thanks for that Yas! LOL! Made me chuckle!To be fair, we both know from our dealings with him on other BBs that not much effort is needed to dismantle the unsubstantiated nonsense that the pugnacious one comes out with. Anyone with more than a single digit IQ can see that he speaks out of his derriere 99% of the time! Good for entertainment value though! LMAO

[nigelpm] 06/2/2024 18:25

Decent director buying there - particularly from Latin.

Obviously capable of reading an RNS and the impact of both two tax and a dividend payment on H2 cash flow unlike many twitter'ati who were mindlessly pumping it up a few weeks back.

[oilinvestoral] 06/2/2024 18:23

RNS : 117,225 shares purchase by David Latin (NEC) at 183.73p/ share At least he doesn't seem to suffer from the same allergy that prevented Flegg from purchasing SQZ shares ...

[yasx] 06/2/2024 10:09

I think the fear of a dividend cut is exaggerated - although conceivable, it is rather unlikely. At the current price and the double digit yield, I see no reason to sell.

OilAl,

Re the galloway reference - it is the manner in which he dismantles the opposing thesis (complimentary by the way).

Here is an example...

[oilinvestoral] 06/2/2024 10:08

I would tend to agree. The impact of any cut would be far worse in MC drop than simply paying the divi! The net cash almost covers the dividend. They do have an extremely heavy CAPEX programme that needs upfront funding. While the tax rebate is useful, it won't be paid until the next year. So they might have to dip into the reserve facility for working capital & equipment purchases etc (assuming oil and gas prices remain at these levels). Not a big issue in my book. There has been a lot of talk among investors on Twitter about a potential divi cut. Not sure who needs to hear this but : revenues don't pay dividends but FCF after tax and CAPEX does. #SimpleAccountancy #FCF #SiriDefineRevenues

[nigelpm] 06/2/2024 09:47

I'm not really sure why there is any talk at all of cutting the dividend. As stemis lays out it's completely within the financial capability of a business generating revenue of somewhere between £2 and £3m per day!

[stemis] 06/2/2024 09:16

No, I'm saying that SQZ cutting the dividend would be a relatively small addition to the firepower of the company (bearing in mind it's cash reserves, increased facilities and operating cashflow) for what impact it would have on the share price (a 10p drop would knock $50m off market cap).

[oilinvestoral] 06/2/2024 09:07

Does "have just increased their borowing facilities" imply they pay the dividends from cash but use the borrowing facility for capex ?

[stemis] 06/2/2024 09:05

Cost of maintaining the 23p dividend (yield of 12.5% t 184p) is $113m. Can't see how any savings (by, for example, cutting it in half) would be worth the impact on the share price if they are producing over 40k boe/d at $20/bl, have net cash of $81m and have just increased their borowing facilities.

[oilinvestoral] 06/2/2024 08:37

Salty Feel free to use the filter button . There's always a choice (wink emoji)!

[saltraider] 06/2/2024 08:35

Still blatant deramping, oili_Al. Same course ... just a change of tack. ;-)

[oilinvestoral] 06/2/2024 08:17

Yes a holder for 9 years of the stock I’m a deramper! Gets a life !


Seriously though with Flegg at helm, I should’ve been much more bearish! My bearishness wasn’t enough to make me sell!

In all honesty, at 450p I had made life changing money! Should’ve taken it and ran for the hills.


The signs were honestly there : when you see the likes of NigelPm rock up in 2022 it was truly time to sell and move on!