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National Fuel Gas Co NFG

National Fuel Gas Company is a holding company. The Company is a diversified energy company engaged principally in the production, gathering, transportation, storage and distribution of natural gas. Its segments include Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment is engaged in the exploration for, and the development and production of, primarily natural gas in the Appalachian region of the United States. The Pipeline and Storage segment provides interstate natural gas transportation services for affiliated and nonaffiliated companies through integrated natural gas pipeline systems in Pennsylvania and New York. The Gathering segment builds, owns and operates natural gas processing and pipeline gathering facilities in the Appalachian region. The Utility segment provides natural gas utility services to customers through a local distribution system located in western New York and northwestern Pennsylvania.


NYSE:NFG - Post by User

Comment by AlwaysLong683on Aug 05, 2022 8:51am
90 Views
Post# 34873526

RE:Taken directly from the news release

RE:Taken directly from the news release
megacopper wrote: Read people. Taken right from the last news release. (See below) And I know for a fact that NFG's burn rate is one million dollars a week. Hopefully you can do the math from there when they will run out or do I have to spell that out for you as well. Hopefully you guys are better at math than you are at reading. Sad state of affairs here on this board lately. 

$77 million in cash and marketable securities. You guys want me to go out and find the 14 drills for you as well because nobody seems to be able to read very well on this board. Oh my give me strength. 

About New Found Gold Corp.

New Found holds a 100% interest in the Queensway Project, located 15km west of Gander, Newfoundland, and just 18km from Gander International Airport. The project is intersected by the Trans-Canada Highway and has logging roads crosscutting the project, high voltage electric power lines running through the project area, and easy access to a highly skilled workforce. The Company is currently undertaking a 400,000m drill program at Queensway, now approximately 56% complete. The Company is well funded for this program with cash and marketable securities of approximately $77 million as of August 2022.



With respect mega:

1) How do you know NFG's burn rate is $1M a week? Can you provide us with an online source from the company confirming this (recent NFG press release? other recent NFG company document?), are you claiming that you have access to insider information and financial data the rest of us don't, or did you "hear" it from an NFG employee while visiting the Queensway site, making it heresay and thus unreliable (I assume you didn't travel to NFG's headquarters in Vancouver to sniff out this info), 
 
2) No need to go out and find the 14 drills. I've already stated just that in an earlier post. For those who wish to confirm it, my source is  NFG's latest press release dated August 2, 2022 which states in the "Queensway 400,000 Drill Program Update" section:
 
Approximately 56% of the planned 400,000m program at Queensway has been drilled to date with ~28,000m of the core still pending assay results. Fourteen (14) core rigs are currently operating meeting New Found’s targeted drill count for Q2. 

3) The company does state on the "Share Structure" page of it's website that it has $77M in "Cash and Marketable Securities". Since NFG states right below that line that their market cap as at July 29 is $927M, I think it's reasonable to assume the $77M is also as at July 29. In its latest set of publicly-released financial statements dated March 31, 2022 (released May 16), NFG lists the actual "Marketable Securities" they own in note 5 of the balance sheet section (pages 12 and 13). It includes shares of LAB, NFLD, NVO, and Long Range (private company?) along with LAB and NFLD warrants. Now, I suppose NFG could sell some / most / all these marketable securities and get the cash for them - the question is, would they do it? Do they still consider LAB, NFLD, NVO undervalued at current share prices and/or having great potential, or are they preparing to exit these names in the next few months? If they want to continue to own these securities, they would logically be taken out of consideration as a source of cash to fund ongoing operations until they decide otherwise.

4) What is your point when you referred to NFG's company summary paragraph at the end of its latest press release (August 2)...?....Are you saying that you know NFG will not do an equity raise before the end of this year? Longer? Please clarify.

Before you do however, consider the following:

NFG press release dated October 14, 2021:


About New Found Gold Corp.
 
New Found holds a 100% interest in the Queensway Project, located 15 km west of Gander, Newfoundland, and just 18 km from Gander International Airport. The project is intersected by the Trans-Canada Highway and has logging roads crosscutting the project, high voltage electric power lines running through the project area, and easy access to a highly skilled workforce. The Company is currently undertaking a 200,000m drill program at Queensway.  With a current working capital balance of approximately $105 million, New Found is well funded for this program.  

NFG press release dated October 21, 2021 (7 days later):

New Found Announces $48 Million Investment by Eric Sprott

New Found Gold Corp....is pleased to announce that it has arranged a non-brokered private placement with Mr. Eric Sprott of 5 million common shares of New Found...at a price of C$9.60 per Common Share, for gross proceeds of C$48 million.

New Found intends to use the proceeds of the Offering to fund exploration of New Found’s 100% owned Queensway Project and for working capital and general corporate purposes......

NFG press release dated November 24, 2021 announcing the closing of the deal confirms the flow-through nature of the share purchase.

The moral of the story here is, just because the footer of a news release claims that a current project is "well funded" doesn't mean the company won't be raising funds in the near future.


I obviously don't know (and never claimed to know) when NFG's next raise will be, but my hunch is October or November given they haven't done a raise since the one mentioned above last year and are now likely in the position of being able to do another flow-through deal.

Since we don't know what is being discussed among the Board and/or Management team, all we can do is provide our opinions as to what might occcur, then see what happens. However, it is inappropriate to claim you know anything without presenting evidence to back up your claims. Thus, if you can point us to the source of your $1M a week burn rate claim which we can then check for ourselves, it would establish confidence in your claim.
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