Added to YB: 2024-04-15
Pitch date: 2024-04-14
VLE.TO [bullish]
Valeura Energy Inc.
+38.91%
current return
Author Info
Company Info
Valeura Energy Inc., together with its subsidiaries, engages in the exploration, development, and production of petroleum and natural gas in Thailand and in Turkey.
Market Cap
CAD 539.6M
Pitch Price
CAD 5.68
Price Target
N/A
Dividend
N/A
EV/EBITDA
0.92
P/E
2.26
EV/Sales
0.59
Sector
Oil, Gas and Consumable Fuels
Category
value
Valeura Energy: Relentless Climb To Fair Value
VLE.TO: Thailand's top independent oil producer at 1-2x EV/FCF. $213M EV with $193M cash, no debt. Targeting $140M+ profit in 2024 at $85 Brent (currently $90+). 219% reserve replacement in 2023; growth via drilling & cheap M&A. Potential catalysts: tax restructuring to eliminate taxes for 1 year ($100M+ savings), continued reserve growth. Risks: reserve life, decomissioning costs, jurisdiction. Fair value estimated at 5-10x FCF. Mgmt favors M&A over buybacks to replicate past success.
Read full article (9 min)