You've replied to questions regarding Valeura Energy's financials earlier in the year. It seemed at the time, you used Bloomberg's numbers which differ greatly from that of the company's. Wondering if you can take another look and comment on whether you feel the current share price still represents good value. Their revenue and cash position over the past few years seems decent for a smaller oil play. Just wondering if I should continue hanging on to my position for a little more potential upside?
Thank you,
Tom
VLE does not release full Q2 results until August 7, but did put out a Q2 update. In the Q2 production averaged 21,500 b/d, and full year guidance of 23,000 to 23,500 b/d was maintained, even though production was down 10% in the quarter. Prices were lower with oil dropping year over year. Revenue was $129.3M. Cash is $242M, no debt. The Wassana Field was approved and is now moving to the construction phase. Even with a 66% one-year rise (down 4% YTD) the stock remains very cheap, considering its balance sheet and expected growth. The sector has been mixed this year, and many expect lower prices. VLE's smaller size adds risks, but it is executing well enough and we do think it should get a higher valuation multiple over time. We would be OK holding.