Crew Energy Inc T.CR

Punished for no asset sales / no debt reduction.

[Cheadle12]

What could have been a good quarter dissappointed the street.

Will be a longer climb up now until the Landman & Team get off their hands and sell some assets.

[martman16]

They try and paint it over with the 450 headline.  Wtf, how no debt reduction??  How much are they paying themselves...

[gonatgasgo]

We will go back above $2 soon enough.  Not sure why Dale does not see the urgency in selling some land.  Q3 will be awful due to the low production.  Q4 will hopefully be amazing.

[Beakr123]

Based on the info provided by Cheadle, it seems like Crew is in the process of selling off the Lloyd asset to Westlake. Looking at the AER records the transfer of multiple licenses has been approved back in May however has still not been marked as closed. I dont profess to know exactly what that means but perhaps the negotiations have hit a hurdle and delayed finalizing the sale. I quickly sold

[HJDFSJ]

I called Crew and talked to John. He said the Lloyd transfer was small, about a section of land. No money was exchanged. West Lake will recomplete some wells there that Crew wasn't interesting in recompletibg but they were able to shed future abandonment/reclamation costs. Said Lloyd is still for sale but can be difficult to for companies to get financing to buy heavy oil, but there is some

[Cheadle12]

The real point is that they need to pretty much 'give away' these assets.  They're holding Crew back.  Liabilties / abandonment.    $20M come and take it all, production and battery. Put the $20M on the revolver to bring debt down immediately. This is what the street want to hear.   Oldnagger, I don't agree with you that debt isn't a concern

[Oldnagger]

Today was a rough day for everyone. That is an understatement. Was likely predictable that cash flows would be down  due to lower nat gas prices vs Q1. Volume held up in spite of Spring break. Too bad about Maintenance outages in Q3.  The good news is that commodity prices are strong with nat gas and c3's c4's etc Condensate will also regain its mojo Other than outages

[TouchDown12]

Naggy - Always appricate your perspective amongst many valued posters on this BB. I ended up holding on to a fair number of CR shares since the rise and cetainly today was a bad CR day. I have no doubt you are very clear about what you see and how you respond to CR as an investment - but i have to admit that the market is much less than clear and i think the resposibility for that, in part, lies

[Cheadle12]

well said TD & wholeheartedly agree. You pay for mgmt.. often a premium.. and in the case of Crew, I expect(ed) the company to get a bit leaner and align their land base size with production and growth capabiilty. Oldnagger, it's like farm land.. it's generally pretty cheap, but if you diivide it up into parcels and sell to builders to develop, for sure, the land value goes up. 

[Cheadle12]

This is such a kop out, pathetic answer (no disrespect to you HJDFSJ btw): "Lloyd is still for sale but can be difficult to for companies to get financing to buy heavy oil," Which means that they are overpricing it (more than the market can afford to pay). Sell those darn assets.  They're old junk and holding the company back.  It also takes time & focus to even

[Seppelt]

I don't recall if it was late 2017 or first half of 2018, but someone mentioned that the co was very close to sell Lloyd for a good price. It was producing 2000+ bbl/d plus oil was rising. But there was no deal and then oil collapsed in late 2018 and WCS plunging to about $15. Then a slow recovery in 2019 ended up with a more severe collapse when OPEC+ failed to extend its agreement which was

[downwithdotcom1]

i remember this ..simple, lands were sold conditionally but then deal fell apart as the buyer's financing fell thru..i've always been a supporter of them KEEPING their heavy oil assets as its served them well on a number of occasions with much better netbacks - relatively low cost for sustained maintenance .choose when to increase production or not without damaging the well bores . BUT, if

[HJDFSJ]

All good TGC, I'm just the messenger. I agree with what you're saying.