måndag 4 november 2013

Eagle Energy växer utan att göra PP



Ser lovande ut vid första anblick, får titta mer noga ikväll. Snart också spännande Q3 rapport.

Eagle Energy Trust Announces $26.3 Million Acquisition of Producing Oil Assets in Texas and Increase to Credit Facility
CALGARY, ALBERTA--(Marketwired - Nov. 4, 2013) - Eagle Energy Trust (TSX:EGL.UN) is pleased to announce that its operating subsidiary, Eagle Energy Acquisitions LP ("Eagle"), has entered into a binding agreement with an undisclosed party to acquire producing petroleum properties in Hardeman County, Texas (the "Assets") for a purchase price of $US 26,250,000 in cash, subject to closing adjustments (the "Acquisition"). Eagle expects to add approximately 300 barrels of oil equivalent ("boe") per day to its existing production. The Acquisition is expected to close on or about November 25, 2013, with an effective date of October 1, 2013.
The Acquisition
The highlights of the Acquisition are as follows:
  • Current working interest production of approximately 300 boe per day consisting of 97% light sweet crude (43° API) from 34 producing wells
  • Internally estimated reserves by a qualified reserves evaluator of 1.47 million boe (proved only) as at October 1, 2013, of which 88% is proved developed producing
  • Historical one year cash flow of $US 4.5 million
  • Accretive to production, reserves and cash flow per unit
  • Field netback of $US 48 per boe at $US 93 WTI
  • Approximately 10,000 gross acres of land, a 150% increase in Eagle's total gross land position
  • 80% of the land is held by production, with the undeveloped lands remaining available to be drilled under current leases through 2017
  • Eagle will operate 85% of the wells and hold a 90% average working interest in the Assets
  • Estimated average annual decline rate of 12%
  • Minimal annual maintenance capital, further supporting the sustainability of the Trust's cash distributions (2014 capital investment will be determined as part of Eagle's 2014 budget process)
  • Anticipated upside consists of recompletions, additional low risk drilling, operational enhancements and potential horizontal Atoka trend development
The $US 26.3 million Acquisition will be entirely funded by bank debt. Pro-forma net debt at closing is expected to be approximately $US 76 million resulting in a conservative pro-forma debt to cash flow ratio of 1.5:1 (based on Eagle's full year 2013 cash flow guidance adjusted for historical one year cash flow from the Assets). After the closing of the Acquisition, Eagle expects to have approximately $US 14 million of undrawn capacity under its credit facility. 
"We are pleased to add a third, high quality, low decline oil-focused asset to the Eagle portfolio," said Richard Clark, Eagle's President and Chief Executive Officer. "Like our previous acquisitions, this Acquisition adds a high field netback, cash flow producing asset, which provides upside through a low risk drilling inventory. The Assets maintain Eagle's focus on oil production located in close proximity to refineries, enhance the long-term sustainability of Eagle's asset base and represent an accretive acquisition for our unitholders without stretching our balance sheet."
Credit Facility
Eagle is also pleased to announce that the syndicate of lenders for Eagle's credit facility have completed their annual mid-year review and have approved a $US 9 million increase to the borrowing base under the credit facility to $US 70 million and an extension of its term to May 2015. In addition, upon the successful closing of the Acquisition, the lenders have approved a further increase in Eagle's credit facility to $US 90 million consisting of a $US 80 million revolving facility and a new one year non-revolving credit facility of $US 10 million. 

2 kommentarer:

  1. Ja, det där ser väl lovande ut

    Banklånet kanske är en brygga och PP-n kommer lite senare för att lösa banklånet!?

    Hellbound

    SvaraRadera
    Svar
    1. Det kan du mycket väl ha rätt i. Frågan är isåfall dock om det blir PP eller konvertibel. Med tanke på dagens kursutveckling och låga omsättning skulle jag då också säga att bolaget har dåliga investmentbankpartners då kursen inte hålls stark.

      Vi borde nu vara endast dagar från vad som borde vara en stark Q3 rapport. Vi får hoppas det blir så och jag hoppas också att vi slipper en rabatterad PP. Om vi räknar bort risken för det... så tycker jag dagens förvärv verkar klart vettigt. Har lite svårt att förstå att aktien inte visar styrka. Men det är klart... om det är så att någon vet att PP blir offentlig direkt efter stängning så är det ju mer logiskt....

      Jag ser absolut risken men säljer inte för jag tycker förutsättningarna var väldigt goda före detta förvärv och att dom blivit ännu bättre nu med ökad diversifiering och fallande snitt decline rate i bolaget.

      Radera