Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

Oil & Gas Producer Builds Up Cash

Source: Bill Newman

 

November 7, 2023 (Investorideas.com Newswire) The company is expected to continue amassing cash given strong oil prices, in line production and two wells restarting soon, noted a Research Capital Corp. report.

Valeura Energy Inc. (VLE:TSX; PNWRF:OTCMKTS) continues growing its cash position, having US$103.4 million (US$103.4M) at the end of Q3/23, reported Research Capital Corp. analyst Bill Newman in an October 6 research note.

"We expect Valeura to quickly build up a large cash resource that can be redeployed into maintaining and growing production from its current assets or into an acquisition of additional assets in Southeast Asia or returned to shareholders through a dividend and share buyback program," Newman wrote.

164% Projected Return

The Canadian oil and gas producer has a share price now of about CA$3.12, noted Newman. Research Capital's target price on it is CA$8.25 per share.

As such, the potential return for investors is significant, at 164%.

Valeura is a Buy.

Production in Line

In his report, Newman summarized a Q3/23 operational update provided by Valeura. Production during the quarter ended September 30, 2023, averaged 19,961 barrels per day (19,961 bbl/d), just above Research Capital's estimate of 19,850 bbl/d.

"Production from Valeura's oilfields is performing to expectations," Newman wrote.

Also, during Q3/23, the energy company successfully drilled seven wells. Two of these were appraisal wells at Wassana in the Gulf of Thailand, "which we expect have substantial increased reserves," Newman commented.

Bolstering the Balance Sheet

Newman wrote that Valeura's "cash is building," and Research Capital expects this to continue.

During Q3/23, Valeura paid US$29M in petroleum income taxes, the first installment. The deadline for payment of the second one is the end of May 2024. Also, the company paid down its debt by US$21.2M, reducing it to US$12.9M.

Valeura's net cash at quarter's end, after these transactions, was US$103.4M, noted Newman. This amount reflects the company's cash and cash equivalents in addition to restricted cash minus outstanding debt.

What To Watch For

The next catalyst for this company, with operations in Turkey and the Gulf of Thailand, expected this quarter, is the restart of production at Wassana.

Moving into 2024, another event expected in Q1 is the release of a reserves and contingent resources report.

More Info:


Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


That's all it takes to get an article published on Investor Ideas - Learn More





Get more Oil and Gas - news, articles, and stock directories

Buy a energy guest post on Investorideas.com