VAALCO Energy reported $20.78 million in 2-2020, 28.4% less than in the same quarter last year and 2.6% sequentially.
Significant oil production in the current quarter of 2020 with 5410 Bop/d, 47.7% more than in the same quarter last year and 9.4% sequentially.
EGY is an inventory to collect now with a horizon of one to two years.
Picture: Gabon on the high seas
U.S. oil manufacturer VAALCO Energy (NYSE: EGY) published its quarterly effects on August 7, 2020. The recent and successful drilling program propelled the company’s production to a record 5,410 Bop/d. However, with a learned oil value of $28.31 consistent with the barrel, all this impressive production generated an average profit of $20.78 million.
The company depends mainly on the value of the oil it receives for its oil production in Gabon. Any deterioration in value has an immediate and serious negative effect on money flows.
Data via YCharts
The investment thesis is difficult. I think VAALCO is a smart bet for oil recovery in 2021, and would collect inventory on any weaknesses, especially below $1, if possible. I don’t think oil costs are going to go down much from here. Thus, accumulating with an era of waiting one or two years deserves to pay off. In the meantime, it is very important to negotiate inventory in short-term technical analysis.
Data source: corporate and Morningstar
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1 – Total revenue $20.78 million in 2Q.20
VAALCO Energy reported $20.78 million in 2-2020, 28.4% less than in the same quarter last year and 2.6% sequentially.
On August 7, 2020, the Company reported earnings from proceeding consistently with $0.6 million ($0.01 consistent with diluted equity) for the 2020 quarter. Adjusted net source of income $5.3 million, or $0.09 consistent with diluted equity.
VAALCO Energy its oil for $28.31 consistent with the barrel this quarter, which is an all-time low over several years, as shown in the table below:
2 – Free money represented a loss of $15.5 million in 220
Note: Free money is money from operating activities minus CapEx.
VAALCO generated positive annual loose money and earned $0.84 million (“ttm”) with a loss of $15.51 million in the last quarter of 2020.
New percentage repurchase program: from June 2019 to April 2020, the company collected 2.7 million percentages.
CfO Liz Prochnow in the convention call:
Lately we estimated that VAALCO’s steady balance with a equilibrium point in 2020 will be approximately $26.5 consistent with the net barrel of oil sales, and our loose monetary balance value will be approximately $35.50 consistent with the net barrel of oil sales.
3 – Oil production and other considerations
Production for the time quarter of 2020 5410 Bop / d, 47.7% more than in the same quarter last year and 9.4% sequentially.
The indicated production is NRI, which means interest on net income. This is the total benefit EGY has on Gabon’s oil and fuel lease. Direct participation or WI 6.218 Bop / d.
A direct interest is the property of the home itself, adding the right to drill and produce oil and/or gas. Homeowners of direct interest fully participate in the proceeds of a successful well and pay all drilling and operating costs of the well, adding royalties.
Liz Prochnow in the convention call:
Due to the effect of commissioning the new wells at the expiration of 2019 and early 2020 through our successful drilling and refurbishment program. Sales volumes for the first and last quarter of 2020 did not correlate strongly with production volumes, as the 85,000 barrels expected to be lifted by the end of March 2020 were delayed until 1 April 2020 due to poor weather conditions.
The value of oil at the time of the quarter of 2020 decreases by 58.7% compared to the previous year and 51.6% declines sequentially.
By contrast, the company said it had reduced its barrel-consistent production expense by 17% at the time of the 2020 quarter, reconditioning, by 17% to $19.31 consistent with the barrel, compared to $23.39 consistent with the barrel the previous quarter. The load decreases with production accumulation.
It takes time to locate a drilling rig and buy all the devices we would like for the drilling season. Therefore, it is as a maximum productive of 12 to 18 months, however, we are talking to our partners when it is time to start making the first investments before a drilling campaign, again, which includes the device we want when they are long. Manufacturing.
Don’t I get the previous comment? It’s not hard to find a Jack-up to break now. Many corporations are suffering from unloading drilling and will be more than willing to do so at a reduced daily pace. This delay and the lack of determined movements have bothered me in this management.
Technical research (master plan)
The EGY bureaucracy has a downward corner trend with a resistance of $1.20 and $1.03. The short-term strategy is to sell about 40% of your position at $1.20 and repurchase between $1.05 and $1.00. Repeat as much as possible.
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Disclosure: I am / we are egY long. I wrote this article myself and expressed my own opinions. I don’t get any refund for this (apart from Seeking Alpha). I don’t have any dating announcements with a company whose action is discussed in this article.