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Journey Energy Inc T.JOY

Alternate Symbol(s):  JRNGF

Journey Energy Inc. is a Canada-based exploration and production company focused on conventional, oil-weighted operations in western Canada. The Company is engaged in the exploration, development, and production of crude oil and natural gas in the province of Alberta, Canada. The Company is engaged in pursuing growth through drilling on existing core lands in Alberta, implementing water flood projects, completing accretive acquisitions, and growing its overall production and reserves base. The Company seeks to optimize its oil pools on existing lands through the application of practices in horizontal drilling and, where feasible, with water floods. Its areas of operation are along a resource, Fairway, which consists of the Central Alberta and South Alberta. Its Central Alberta includes Gilby-Duvernay, Crystal, Cherhil, Kaybob, Ferrier, and Ante Creek Waterflood. Its South Alberta includes Matziwin, Skiff, Herronto, and Medicine Hat EOR.


TSX:JOY - Post by User

Bullboard Posts
Post by InvestLargeCon Mar 17, 2015 4:42am
139 Views
Post# 23528513

2015 production growth with strong balance sheet & dividend

2015 production growth with strong balance sheet & dividend
And given the strength of the balance sheet, we might see some acquisitions too. I quote:
 
 
 
"Our $0.025 per share monthly dividend represents a meaningful 6% yield given our current share price.  The financial cost of this dividend is less than 25% of 2015 forecasted cash flow.  After incorporating our forecasted DRIP and SDP participation rates, the total cash burden is less than 12% of cash flow. 
 
Journey's 2015 capital program is forecast to yield annual production volumes in the 11,000 to 11,200 BOE/d range.  This represents a 7% growth over our 2014 average production.  The Company has carefully paired back our capital program to $61-$63 million from $70 million.  We have already begun realizing cost savings in our field operations due to reduced activity levels, and we anticipate even greater savings if low commodity prices persist into the second half of 2015.  We have modeled some of these savings into our revised forecast.  This capital program will result in Journey participating in 16-17 net wells and achieving the forecasted production levels throughout 2015.  Journey has re-evaluated all of our capital prospects in the context of the current market and plans to allocate over 85% of 2015 capital to projects that generate rates of return in excess of 30% and have payout periods of less than 2.5 years at the current prices.
Journey is currently forecasting cash flow from operations of $61-$63 million with net debt ending the year at between $108 and $110 million.  Currently, Journey is using 2015 price forecasts of $56.60/bbl USD (WTI); $2.90/mmbtu CAD (AECO); and an FX rate on 0.80 US$ / CND$.

Journey continues to be focused on protecting its balance sheet in 2015.  If the downturn in commodity prices persists later into 2015, the volatility in the markets can present unique opportunities to companies that maintain financial flexibility.  With less than 50% drawn on our $205 million credit facility, and a supportive major shareholder that has assisted with transformational acquisitions in the past, Journey is well positioned to capitalize on opportunities created by the current environment."
Bullboard Posts