Valeura Energy Inc T.VLE

at current dollar bent

[Carbonbull]

This company still generates north of 20 percent free cash flow , dont know where else you can find this type of cash generating company. please do your own analysis as always this is not meant as investment advise , only my back of envelope excell work. Coremark has a couple of good reports out that provides the imput to analysis.
The big question is how much oil is still in the unengineered category , and when will Chevron assets come to the market,,, price action appears to be setting up a bot deal!!

[cyber37]

Oil reserves are categorized by level of certainty that they can be recovered ie; proved producing, proved plus probable and proved plus probable plus possible; 1P; 2P & 3P respectively. VLE acquired those Thailand mature assets based mainly on 1P level of reserves (as most aqusitions are) hence the low price becouse those were low & declining rapidly. So yes it is a very valid question

[goldwatch69]

Not sure how you arrived at 20%... it's more like 10 to 11% at $72 Brent. OPEX is about $28. SGA about $2.  CAPEX about $16. That leaves $26 without Royalties and Taxes factored in.  Less 11% of $72 for Royalties about $8 and 25% after expenses for Taxes (72-8-28-2=34x.25~8) about $8. Knock off another $16. That leaves $10 FCF. Revenue and Royalties all decrease by approximately

[firstworld]

At $87 bbl their profit was $7bbl. They are losing $250K day plus operating net plus at $70 bbl because they didn't hedge 25K bbl day.  Plus they lost 140M last QTR. Also note SP decline reflects the cracked FSOP that's bound to fail, best case be out of commission for 6-12 Mths losing 5K bbl day currently generating a $50K day loss, worst case theres a leak and license is suspended