RE:Budget
I think it looks realy good, they are making available more FCF all the time, lowering operating costs at MICA with the purchase of the battery lease, the reduction in debt, and the buyback of shares.
The additional compression on the Mica battery will add a little produciton there. Owning the battery will reduce Op costs and make improve the netbacks for the Play. I was wondering how they would spend 190 million in capex in one quarter, as they have been spending less all along.
The second well looks better than the first well in Germany, and they managed to end up with a higher percentage of ownerhsip. Hopefully they can accelerate it into production in 2025.
Not much said about the SA-07 block in Croatia, i guess that it is a wait and see in terms of getting the wells online with partners who have existing infastructure in the area.
It will be interesting to see the 4 USA wells drilled, it good they took their time there.
The midpoint 2% growth target looks good and acheiveable, Europe gas looks strong, hedge book in great shape.
20% FCF at strip, is nothing to complain about, but I would be surprized if it does not end up being a lot higher. This year at AECO really could not of been to much worse.
IMHO
MHP