Strathcona Resources Ltd T.SCR

NOT VERY IMPRESSED With The SCR Q3/2023 Financials !

[ztransforms173]

- LOTS of BOE but SKIM MILK on the FREE CASH FLOW metrics

***

Strathcona Resources Ltd. reports third quarter 2023 results and announces 2023 and 2024 guidance

 

November 13, 2023   4:30 PM   PR Newswire

Highlights

• Production of 147,461 boe / d (81% oil and condensate, 86% total liquids)(1)
• Operating Earnings of $289.9 million ($0.13 / share)(2)
• Free Cash Flow of $154.5 million ($0.07 / share)(2)

https://boereport.com/2023/11/13/strathcona-resources-ltd-reports-third-quarter-2023-results-and-announces-2023-and-2024-guidance-2/

***

- ONLY GOOD TRAGECTORY of this company is GROWING BOP/COP/BOE and PULLING BACK DEBT to $2.5 BILLION in 2024

Production Guidance

Strathcona expects 2024 production of 190 to 195 Mboe / d (70% oil and condensate, 77% total liquids).

Strathcona’s board of directors has approved a debt target of $2.5 billion, which is expected to be reached in 2024. The Company intends to allocate 100% of its free cash flow towards debt repayment until this debt target is reached, after which a shareholder return program is expected to be announced.

z173

[ztransforms173]

- there is ERROR in NR in PER SHARE AMOUNTS: Shares Outstanding Basic: 214,235,608 Dilutive Securities: 0 z173

[uwebb429]

Strathcona before PIPE used to have a lot more shares outstanding. The results released do not include PIPE.  932,573,693 Strathcona Class A Shares and 1,254,131,751 Strathcona Class B Shares outstanding At $80 WTI, the new and improved SCR is looking to generate $1.0 B of free cash flow.

[bobsomething]

Their share capital from the Q2 2023 report shows $3,053 Billion was invested by shareholders. 2,187 Million average common  shares  $3,053 / 2,187 = $1.396 per share value of share Add 10% for Pipestone $1.396 + $ 0.1396 = $1.536 Now convert to New Strathcona Amalg $1.536 / 0.67967 = $22.60 This is the low that was hit these past few days. So this weeks trading price

[filefish]

FCF of $154 mil on production volume of 147m boe/d seems low compared to peers. Agree, numbers are not impressive. I think once they digest PIPE and focus on operations,  numbers will be better. Need to review md&a and see the current hedging book.