Post by
MyHoneyPot on Apr 27, 2023 8:32pm
A Strong Beat on the Earnings Front
AAV is making major progress in Wembley and is now exploiting its third zone in this liquids rich play a has drilled 7 wells there this year. Some of the these wells 2 miles in length.
Expect a major liquids bump for AAV for 2023.
The wemble acreage is next to Kelt Acreage, Kelt has fully deliniated the acerage and the wells have and IP365 of 822 boe/day.
Wembley is coming on with 7 new wells, the plant is getting 25Mmcf of additional processing capacity, Entrophy AAV should get a bunch of cash back and is working better than planned and AAV owns 90% of the shares.
The share buyback has been fantastic, and effectively added 15% production per share.
It seem to me with low debt and hitting on all cylinders AVV is looking really strong.
Really these should be the bottom of the cycle for gas producers, and Glacier with the carbon capture will be some of the cleanest gas on the planet.
IMHO
Comment by
PabloLafortune on Apr 27, 2023 9:56pm
Be careful. The balance sheet deteriorated $86M in Q1. Sure they bought back shares but strange. Also, they added to the debentures?
Comment by
PabloLafortune on Apr 28, 2023 10:43am
I'lll wait for a lower share price.
Comment by
MyHoneyPot on Apr 27, 2023 11:00pm
I think you right, their debt is now in their desired debt range. However they did add a lot of debt this quarter. I really don't know how to evaluate the value of Entrophy, it sounds like they need to do their phase 2 of their CCS project. Hopefully they add a lot of BOE's of liquids from Wembley. IMHO