ROCC potentially for sale

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SergioSays
Posts: 99
Joined: Mon Jul 12, 2021 8:59 am

ROCC potentially for sale

Post by SergioSays »

https://www.marketscreener.com/quote/st ... -42357726/

Good timing with all the recent Eagle Ford deals.
Fraser921
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Joined: Mon Mar 22, 2021 11:48 am

Re: ROCC potentially for sale

Post by Fraser921 »

Good rumor/tip!
dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Re: ROCC potentially for sale

Post by dan_s »

ROCC definitely has the assets to be a takeover target which is why I put it in our Sweet 16
Dan Steffens
Energy Prospectus Group
dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Re: ROCC potentially for sale

Post by dan_s »

Petroleum Economist with my comments in blue.
14 November, 2022

From the reported Q3 results of Ranger Oil a promising look ahead for 2023 and beyond can be deduced. Production will grow, while free cash flow and profits -despite lower oil and gas prices - will remain close to or even above 2022 levels. Hopefully Ranger oil will increase in 2023 the meagre returns to the holders B-shares making these shares more attractive.

2023 PRODUCTION

The acquisition of acreage in the Eagleford plus other bolt-on acreage, in combination with the contracting of a 3rd rig will enable a 15% production growth in 2023 towards 47.5 K BoE/d. < My forecast is 26% production growth YOY in 2023.

2023 PROFITS

Ranger Oil profits in 2023 can increase. The higher production in combination with reduced hedging losses will offset the impact of lower oil prices. With an oil price in 2023 of $ 83.10/bbl (based on 2023 WTI futures) 2023 profits can reach $ 242 M equivalent to an eps =$ 10.80 and an attractive PE of 4.1. < If Ranger's realized oil price is $85/bbl they should earn over $13 per share in 2023.

2023 FREE CASH FLOW AND RETURNS TO SHAREHOLDERS

The returns to holders of B-shares are in 2022 was limited to dividends in Q3/Q4 only, for a meagre total of $ 0.15, equivalent to a yield of 0.35%.

The announced share buy-back program in 2022/2023 is constrained to the non-controlling A-shares (reducing from 21.1 M late 2021 to 19.1 M end Q3). The number of issued B-shares remains unchanged at 22.548 M. The 2023 free cash flow should remain above $ 200 M. Hopefully a higher part of this will be utilized to reward the holders of the common B-shares.
Dan Steffens
Energy Prospectus Group
Fraser921
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Joined: Mon Mar 22, 2021 11:48 am

Re: ROCC potentially for sale

Post by Fraser921 »

I bought this one today and hoping the rumor is right. Downside we wait for the great profits to roll in
ChuckGeb
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Joined: Thu Nov 21, 2013 2:46 pm

Re: ROCC potentially for sale

Post by ChuckGeb »

A merger with SBOW would be a perfect fit and create and even more valuable critical mass in Eagle Ford. SBOW being smaller would have a hard pulling off a cash plus stock but an an stock deal would be nice.
dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Re: ROCC potentially for sale

Post by dan_s »

ROCC + SBOW is a very good idea and a large enough deal to draw a lot more attention to these two grossly undervalued stocks.
Dan Steffens
Energy Prospectus Group
Cliff_N
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Location: Seabrook, TX
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Re: ROCC potentially for sale

Post by Cliff_N »

CPE and ROCC crossed over yesterday, I sold a 1/3rd of my CPE and bought ROCC, nice ride today on ROCC and CPE was right behind.
dan_s
Posts: 37269
Joined: Fri Apr 23, 2010 8:22 am

Re: ROCC potentially for sale

Post by dan_s »

From OilPrice.com on 11/22: "U.S. Eagle Ford-focused oil producer Ranger Oil (NASDAQ:ROCC) is reportedly mulling a potential sale to capitalize on high prices, with estimates putting the company's valuation at $2.0-2.2 billion." < $47 to $50 per share

My current valuation is $86/share.
Dan Steffens
Energy Prospectus Group
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