RE:Eight Capital comments on PetroTal CorporationWhat a misleading piece of analysis.
Petrotal's production growth is on tranck and reported that water levels are rising now. Couple that with incrased number of barges and oil being sold to international refiner and reducing the amount going through the Northern Peru Pipe.
From the report:
"Petroperu exported approximately 720,000 barrels of oil to an international refiner, crystalizing for PetroTal over $64 million (including VAT) of true up revenue and reducing the amount of PetroTal’s oil in the Northern Peruvian Pipeline (“ONP”) to 2.4 million barrels;" Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“Having produced over 10.5 million barrels of oil since inception, we are on track to deliver average production growth of approximately 40% and almost $200 million in free cash flow in 2022. Although the Company encountered external transportation challenges, we expect to deliver double digit yearly production growth with potentially 40% plus free cash flow yields under current Brent oil forward strip pricing conditions. The high margin nature of our business should be at the forefront of investors’ sentiment, alongside our proven ability to execute technically.”