Madalena Energy (MVN MDLNF) - reserves-based valuation; big discount
Based on last week’s reserves report, on a relative basis , Madalena Energy (MVN; MDLNF) is valued at a 40% discount to the average 2P reserves valuation multiple in the industry (see the table below).
In addition, unlike many of the industry participants, Madalena has ZERO net-debt.
Furthermore, the 2P valuation gives
i. scant value to the company’s resources in Coiron Amargo Sur Este (CASE), where the company has a 35-yr concession, with its partner, Pan-American Energy, and its pilot drilling program is scheduled to commence this month, and
ii.
NO VALUE to the resources in Curamhuele (Vaca Muerta, also; “stacked” play; Lower Agrio and Mulichinco); immediately adjacent to Chevron’s El Trapial ($200mm CapEx committed)
| Company | Ticker | Enterprise Value (USD mm) | 2P Reserves (mm bbl) | | 2P Valuation Multiple |
| Phoenix Global Resources (formerly Andes Energia) | PGR | 933.75 | 57.2 | | 16.3 |
| GeoPark | GPRK | 1491.4 | 183.7 | | 8.1 |
| Vista Oil & Gas | VISTAA | 550.3 | 74.7 | | 7.4 |
| Frontera Energy | FEC | 760 | 154 | | 4.9 |
| Parex Resources | PXT | 2409.2 | 162 | | 14.9 |
| Canacol Energy | CNE | 852.72 | 102.5 | | 8.3 |
| YPF | YPF | 5500 | | | |
| | | | | AVERAGE | 10.0 |
| Madalena Energy | MVN | 62.8 | 10.7 | | 5.9 |