Crane Co T.CR

Primary Symbol: CR Alternate Symbol(s): CXT

Technology Scientific & Technical Instruments

Crane Company is a manufacturer of engineered components for mission-critical applications focused on the aerospace, defense, space and process flow industry end markets. Its segments include Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense and space markets. The Process Flow Technologies segment is a provider of engineered fluid handling equipment for critical applications. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles, truck bodies and trailers (Transportation). It also designs and manufacturers multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications.

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Crane Co > 2023 Reserves Release

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Comment by gonatgasgoon Feb 04, 2024 9:05pm

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Post# 35862292

RE:RE:RE:2023 Reserves Release

These guys used to like Crew. Crew never puts the most recent level of debt in their presentation unless the quarterly results have been released. So I am not surprised they are showing Sept. rather than December.

The Q4 2023 results will be good due to high condensate production and hedging. I am more concerned about the 2024 outlook. Will they cut nat gas production? They are not making money with nat gas.

However, I remember in a prior presentation that 1,000 boe/d of condensate gives $30M of AFF with WTI at $75 and exchange rate of $0.75. So, $200M of AFF in 2024 with condensate?

upinmuskoka1 wrote:
As per my previous comment the upcoming news might not be good. Just got this from Nugget Capital Partners and their weekly substack

CREW ENERGY (TSX: CR)

While we think Crew Energy is a very good company and the remaining prize for smallcap Canadian M&A targets, we also think the company is in some trouble in the short-term. According to the latest presentation, Crew remains almost entirely unhedged on their natural gas producer in 2024 which is exposed to the brunt of Station 2 and AECO basis, amongst the worst in North America. Luckily for the company, they have been able to target liquids rich production by ‘pivoting’ away from natural gas to more profitable condensate.

It’s not a coincidence in our opinion that although the presentation was updated in January 2024, the net debt levels listed were from September. Unquestionably, the company is quickly building debt to ramp up condensate activity as natural gas prices tanked. The over-emphasis on Crew’s switch to condensate is no laughing matter, they are clearly laying the ground-work for bad news in our view on the natural gas side which is likely to hinder their broader corporate plans to ramp up production and build their long-awaited natural gas plant. With a significant cash flow negative situation and near-term debt build, we think it would be wise for investors to at least wait until Q4 2023 is released to take a position as it is our expectation many are unlikely to like what they see and the risk of a sell-off is relatively high.