TVE is now trading at 5.9x times forward P/E. In the 3Q, TVE’s production grew 58% to a record quarterly production of 68,597 barrels/day. With the combination of a favourable tailwind from high oil prices and record production, TVE generated $132.4M in free funds flow, a 40% growth year-over-year. The balance sheet is okay, with a net debt/EBITDA of 1.3x. The company continues to reinvest heavily back to achieve higher production. Debt payment remains the key focus, however, the company expects to return from 25% to 75% of excess funds flow as early as Q4-2023. Overall, a solid quarter, a cheap name, but the company’s performance will largely depend on oil prices. With the expected capital return program we think TVE is quite attractive here.
5i Research Answer: