Kelt Exploration Ltd T.KEL

Kelt ENERCOM Denver presentation 08/20/24

[PabloLafortune]

Worth a listen. I'll provide my view later:

https://enercomdenver.com/company/kelt-exploration/

[MyHoneyPot]

I listened and found the presentation quite informative in terms of filling in some of the blanks. Oaks well front loaded payout is quite helpful to understand, and puts to rest the question regarding if we are wasting capital during a low commodity cycle, they wells have very good CGR's. and resonable payout durations.  Some of the Charlie lake wells payout in 3 months which is nothing

[PabloLafortune]

Lots of good pieces of info. Main thing I think I learned is that 6? of the 16 Wembley wells bring drilled this year are in a new zone (1) w/o any reserves booked currently. Didn't discuss hedging - the lack of material hedging really works against them in this lower commodity price environment. Shareholder return will come when an asset is sold. From the way they (as in Kelt - only Sadiq

[MyHoneyPot]

Well we differ in opinion regarding share buybacks, which some people refer to as returning capital to shareholders, but i would suggest it is simply evaporating capital into the atmosphere.  Currently with the low commodity prices companies slow down or stop their share buyback because their cash is all spoken for, so if share buybacks only work when commodity prices are at the higher end

[PabloLafortune]

You misunderstood me. I accept the company's strategy of returning capital to shareholders when assets get sold. They just haven't sold anything in 4 years. They are however diluting shareholders with their mgmt pay scheme. 1 manager has sold the equivalent of 0.5% of the outstanding share count since 2015,. A couple of others are at 0.25%. I'll post the whole list if I have time 

[MyHoneyPot]

Thankyou for the clarification.  I think that drilling 32 Montney type wells for a company the size of Kelt is amazing, and being able to time is with infastructure additions is optimal.  I believe that major production increases will happen, and considering they have invest 140 million dollars of their own money, and made asset sales of over 600 million dollars would suggest they are

[Sweetesthing]

I am with Pablos on the insdier sales. It is sickening and sneers agaisnt the public shareholders. Just a bad optic. On the other hand you get a good guy like David Wilson, who just buys, holds and does not rub salt in the wounds of mere sharehlders.  Date      Name