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Yangarra Resources Ltd T.YGR

Alternate Symbol(s):  YGRAF

Yangarra Resources Ltd. is a Canadian junior oil and gas company engaged in the exploration, development and production of clean natural gas and conventional oil. The Company has its main focus in the Western Canadian Sedimentary Basin. The Company has developed its land base to target the halo Cardium at Ferrier, Chedderville, Cow Lake, Chambers, O’Chiese, and Willesden Green with a focus on exploiting the prolific bioturbated zone as part of the entire Cardium package.


TSX:YGR - Post by User

Comment by PabloLafortuneon Jul 31, 2024 12:16pm
138 Views
Post# 36156396

RE:24 Million H1 FCF

RE:24 Million H1 FCFGood little E&P. Bought some today. Nice cashflow generation in the first half - part of that was low capex of course but AECO being so low is the other side of that equation. I've followed this one for a while. Obviously under major pressure from the bankers. Their plan to prioritize reducing bank debt to $80M makes sense to me. Leave it in that range ($70-90M) after that?. They've shown their ability to generate cash in the worst commodity price environment so the bankers shouldn't be worried...  Share volume, most of small cap E&P has minimial interest nowadays. So I feel next (2025) would be to institute a dividend like $0.10 a share annual (10% at CURRENT share price), that will make the stock more appealing and it seems they can afford it - if you look at past few years, between debt repayments and interest, the banks have been getting almost all of Yangarra's cashflow.  What's left will be for growth capex (above maintenance) or buybacks (to cover for RSUs).  Between interest on debt, dividends and buybacks, should be less than 50% (if 1st HH are normal results adjusted for capex (was lower) and AECO (was lower)) @$2.50 AECO. Might want to pay attention to NG hedging in the future too (AECO range seems to be $1 to $4 obviously want to hedge when its $3+). GLTA
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