Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Ithaca Energy looks even better value now

By Gary Newman

28 February 2015 12:30

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Any negative news on AIM listed shares these days often has a disproportionate affect on the share price of the company. Ithaca Energy (IAE) was no exception when earlier this week it updated the market on the development of its Greater Stella Area production hub, and revealed that there had been further delays.

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Comments

JSB

28 February 2015, 13:20

Gary, with all due respect, it’s a train wreck

Trap have just dumped 15% of Athena on them that was losing them 400k a month.
Athena uneconomic at $58, what about GSA? None of that is hedged

They were relying on GSA for cashflow, the capex for 2014-15 was all budgeted on production Q3 and oil @ 90+

Bobo
wildrides

1 March 2015, 03:50

Great work on the Churchill advert Gary . Must have been hot in that dog outfit ……..never mind , I bet the royalties are pouring in now from “cars”
Gary Newman

1 March 2015, 06:21

JSB/Goldenaxe,
I believe that a lot of that is reflected in the current share price though and is why it is down at these levels. Obviously a lot comes down to oil recovering to some extent and how quickly that happens – then again at current levels a lot of producers will be screwed if the oil price was to stay at these levels for a number of years.
Without a doubt the company has hardly performed well what with all the delays to GSA and additional costs etc, but given that the market cap is now under £150 million i think it is attractive compared to some similar sized producers out there, especially if you’re taking a longer term view over the next three years or more.
I also see it as being in a better position in terms of debt than some of its peers, as a large chunk of that debt is via an RBL facility re-payable in June 2017, so gives them a bit of breathing room for now.
All comes down to whether or not we see oil recovering to a higher level or not, and how quickly that happens, as that will be a good indicator of future direction.