Discover and read the best of Twitter Threads about #sqz

Most recents (3)

Really odd sentiment around #SQZ at the moment, since drill results and UK demolition of O+G companies

Oil has been volatile, but #SQZ is 85% gas

Take a look at these day ahead prices, 380p a therm!

Futures also up to 390p/t

The drop to 272p a share today, valued the company at £740m, but its highly likely (even after drill costs and tax) they will have ~£500-£550m CASH by Y/E (yes, in three weeks)

So the EV is estimated just over £200m

Lets look at H1 production and average therm price

26.6K and 175p therm average

Note that down

Read 14 tweets
THREAD: Long Serica #SQZ (market cap: £800m)

I haven’t tweeted much in 2022. A bear market will do that to you. So, why pipe up now? Because I feel so strongly about Serica that I can’t keep quiet.

This is no ramp. Serica’s market cap is £800m with a 50% free float.
No minor tweeter can move such an elephant. But why so bullish?

First, what is Serica? It owns gas fields in the North Sea. These produce 5% of the gas that we use in the UK. Serica is cheap. Its share price is £3. It has £2 of net cash.
So, you’re paying £1 for the business. What do you get? Over £1 of free cash in 2023 alone. Says a big broker. By October 2023, you should have £3 of cash. In other words, more than the market cap. Is there any gas left at that point? Yes. 6 more years of gas production.
Read 10 tweets
I don't think my portfolio has ever been in better shape. Not enough cash to buy as much as I would like to as I can't think of selling anything. It is a unusual feeling and not normal at all but these 6 cash printing machines have a long way to go #JSE #THS #SQZ #TRIN #PTAL #PDL
#JSE watch out for the wildcard i.e. Maari. Not factored into the valuation at all. New NZ legislation has increased the likelihood of completion this year(few months imo). That wld bring $80m+ net cash and another 3.5k bopd. This should increase valuation by at least $160m (30%)
#THS market totally missed the 26% acquisition of minority interest for the issue of c10.5m($26m) new shares. Share of profits due to NCI last year alone was c$31m ($38m OCI). Calculate how much ths wld be for another 17 years open pit and 40 yrs underground. Excellent value imo.
Read 7 tweets

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