RE:RE:guidance 2022 on Monday coming.All good points John and also this topic needs to be touched on.....
What is the cost inflation looking like for OBE and other companies?
Interested to know that...what is capex per well now...
JohnJBond wrote: Yes
OBE has built up Mondays live presentation.
They've made it appear like they have something big to say, and want as many people as possible to hear it first hand
Today is the last day to buy prior to the show
I just hope it lives up to the hype
it seems they need to talk about what they are going to do this year that will double or triple or quadruple the share price this year
They should be able to say the obvious things like
What is their cap ex budget for 2022
What their expected average production is for 2022. This will tell us what their growth rate they are targeting.
Then there are more forward looking statements I hope they will make like
How much debt are they intending to restructure to long term debentures of one kind or another. This number will tell us what their target capital structure is - ie zero debt, $200 million or $300 million. That number tells us when they change direction from debt reduction to dividend payments
Another one may be what sort of dividend payout ratio they are leaning towards - ie is cash going to shareholders or insiders
These two answers tell us when and how much cash will OBE be paying people to hold their shares. Right now it's $0. If it looks like this is about to change to $1 or more, then that's the sort of thing that changes share prices
We can then apply the oil/gas price from day to day to these targets to estimate current free cash flow and how much of that to expect to receive ourselves as shareholders
institutions don't pay much for oil production - but they pay up for dividends and pay a premium for growing dividends. Hopefully on Momday we get an idea if OBE will be priced using high multiples, average multiples or low multiples
Right now we are at low multiples. Multiple expansion is a foundation of rapid share price appreciation.