Seven Generations Energy Ltd. class A common shares T.VII

Should Trade Higher

[MyHoneyPot]

The company has 362 million shares. 

The have never had a quarter with  free cash flow, so these are the changes this quarter what will be the impact?

2018 Year Review 

Potential 200 million free cash flow   =    69 cent for quarter, annualized 2.76, Q3
Production 220 boe day from (187)   =   17.6% increase production
Growth Yr. over Year                         =   14.2 % (assuming 200 boe lower guidance)
Debt Year end (400 FCF)                  =   Year end debt 1.8 billion .81 = 4th quarter CF
Operating Cost -1 dollar boe             =    $40  million Benefit for Q3&Q4  
2017 FF0 1.23 Billion                        =    2018 FFO 1.9B or 46% increase
1.866 Billion Debt 2017 year end      =    1.866 net Debt 2018 year end or less (400 million FCF progected)
 
2018 Capex Production
1.475 B to 1.575 B   Prod Guid (200 – 210)    2017 Prod (175,000 BOE Day)  FFO 2017 1.23 B
                                    Prod Gain (14% - 20%)   2018 Prod (200,000 BOE Day)  FFO  2018 1.90 B          
 
Capex (1.675 – 1.775)   200 million for Gas Plant, Gas plants are long term assets and will added as an asset to the balance sheet.    
 
2109 Capex Production
1.50 B to 1.600 B  Prod Guide (225 – 235) 2019 Prod(230,000 BOE Day)  FFO 2019  2.2 B
Assume reduction in operation costs 100 million dollars.
FCF projection 2019 600 million, = 1.65 share in Free Cash Flow
Debt is 1.8 billion roughly so .81 2019 CF
Or  sharebuy back 18 million share approx.  300 million
 
2019 Year end
344 million shares,  1.5 Billion debt, Production 2020 (250,000 boe)  CF = 2.4 billion

Best Guess
IMHO

 
 

[TUMONE1]

MyHoneyPot I don't think anyone is arguing about the fundamentals and especially if they produce.  There is more at play here right now though from a technical standpoint.   Remember many top firms use algos now and sometimes fundamentals don't mean squat for awhile until they catch up or break the line.   It would be nice if they end up with this - share buy back, plus some

[MyHoneyPot]

Exactly that is what is suggest, i think next year they will pay off about 300 million in debt and by back 5 percent of the shares and just hold the course and get some operational efficiences in place.  IMHO