RE:RE:A Mispriced O&G Growth Story VLEBERationale wrote: Production metrics don't matter. Cash flow is king and this report is littered with errors unfortunately. "
Management has provided guidance of $30 million per month in free cash flow from the Mubadala assets alone." FREE cash flow is less taxes and capex. Taxes are upwards of 50% on certain fields and capex is ~$20mm a month. Managemnt guided to pre tax cash flwo fo $30mm a month but net of taxes and cash flow I am assuming this number is actually negative.
Utilize the tax pools from Kris on Mubadala and push out the abandonment liabilities utilizing latest technology and we are back in business.
Sorry but it is a show me story and I would prefer to wait for the Q2 results to see what the actual free cash flow is. Judging by the negative PDP and in some cases 1P NPV's I think my assumption is correct but I hope I am wrong..
VLE has an integrity crises. Whatever they say today is meaningless because in a week or few they will have material changes and there seems to be extreme incompetence as @ BERational points out.
E.g.
no dilution to two dilutions. two rigs now one, late closing, late priject completions, borderline deception on finances.
Keep in mind the mgmt have a ten+ year rwcord of failure wasting 10s M SH dollars while livibg high life ob fat salary, bonuses and optiona. None of them have actually been Csuite in a company deliveribg material revenues. Its amateur hour.