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Royale Energy Inc. Message Board

fastball.98mph 6 posts  |  Last Activity: 18 hours ago Member since: Dec 26, 2011
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  • fastball.98mph fastball.98mph 18 hours ago Flag

    There's an old saying about banks being institutions that lend you an umbrella when there isn't a cloud in the sky but when it rains they want it back...Without any net working capital the liquidity comes completely from the borrowing base and the bankers who govern it. So if you were the CEO do you stand still and risk the next two quarters of sub $70 oil and the deteriorated covenants that would follow, or do you try to get liquid now by selling assets at fire sale?

  • Reply to

    Back In

    by elkster08 Nov 19, 2014 12:37 PM
    fastball.98mph fastball.98mph Nov 22, 2014 12:27 PM Flag

    The company is swimming in capital. First the IPO in Jan then a large bond issue in late summer. Production growth shouldn't be a problem. Not a substantial amount of acreage so they might have to spend a lot on additional leases and or acquiring a smaller E&P. Seems to trade at a higher valuation than most in the sector. However, that usually is the case with tightly held companies with relatively low floats...Just my take after quick glance.

  • fastball.98mph by fastball.98mph Nov 22, 2014 11:19 AM Flag

    I unfortunately got siked out with the pension obligation after interest rates tumbled. The underlying business is sound and throwing off a lot of cash.

  • fastball.98mph by fastball.98mph Nov 16, 2014 11:04 AM Flag

    In the BoA/Merrill presentation the CEO said most valuation models suggest that Utica is being valued at only $1/per share ($165m). Compare that to the valuations of RICE and ECR. Both combined have less Utica acreage than RRC but both together have a $6bil EV. Since Utica is virtually not priced in at all you can see what the impact would be if they can prove it up in short time...$6bil/165mil is $36/pershare.

  • fastball.98mph fastball.98mph Nov 6, 2014 9:33 AM Flag

    Owned this for a couple years now. So far it's not the operations or investing that has held this up. It's the Cayman tax structure.

  • Reply to

    It's Launch Time Baby

    by hoopervisor2 Oct 31, 2014 9:22 AM
    fastball.98mph fastball.98mph Nov 1, 2014 12:20 PM Flag

    1. Top line growth is very strong and margins are intact!

    2. Net PP&E over nine months is up close to 40%, and still not a dent in the pristine balance sheet!

    3. 2015 CAPEX looks to be cut in half, which will free up a lot of cash to either pile up or knock down the share count...Cheers!

    Sentiment: Strong Buy

ROYL
2.4763+0.0363(+1.49%)9:54 AMEST

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