epm
Re: epm
Note from John White at Roth MKM received on Monday:
EPM: Beats on EBITDA, Misses on Production
EPM reported EBITDA for F4Q 2023 of $4.7 million, beating our estimate of
$4.1 million. EPM reported production for F4Q 2023 of 6,484 BOE per day,
under our estimate of 6,945 BOE per day. The EBITDA beat was due to lower
than-expected lease operating expenses (LOE) and G&A. The production
miss was primarily due to downtime at several properties for various normally
occurring reasons, detailed below. < I dropped EPM because they kept missing their own production guidance.
The higher-than-expected EBITDA was due to 1) higher realized natural gas
and NGL prices than we forecast. And LOE was lower than our estimate, with
an actual figure of $11.8 million against our estimate of $12.6 million. Actual
G&A was $2.26 million, under our figure of $2.3 million.
Production in F4Q 2023 was adversely impacted by 1) downtime at Delhi
Field properties where production was shut in for approximately one week to
upgrade the facilities and install a heat exchanger to increase plant efficiencies
during extreme summer and winter temperatures, and 2) downtime in the
Barnett Shale properties associated with extreme summer weather conditions
along with gathering line maintenance and compressor issues.
Based on discussions with its operators, EPM expects capital workover
projects to continue in all the fields. Overall, for fiscal year 2024, EPM expects
budgeted capital expenditures to be in the range of $4.0 million to $5.0 million.
In our view, this will be easily met with free cash flow, as we model $21.8 million
of free cash flow.
John White's price target for EPM is $9.50. < You can find much better small-caps than EPM in our Small-Cap Growth Portfolio.
My Top Small-Cap Pick is InPlay Oil, which has a lot more upside and it pays higher dividends. See my recent profile on InPlay Oil.
EPM: Beats on EBITDA, Misses on Production
EPM reported EBITDA for F4Q 2023 of $4.7 million, beating our estimate of
$4.1 million. EPM reported production for F4Q 2023 of 6,484 BOE per day,
under our estimate of 6,945 BOE per day. The EBITDA beat was due to lower
than-expected lease operating expenses (LOE) and G&A. The production
miss was primarily due to downtime at several properties for various normally
occurring reasons, detailed below. < I dropped EPM because they kept missing their own production guidance.
The higher-than-expected EBITDA was due to 1) higher realized natural gas
and NGL prices than we forecast. And LOE was lower than our estimate, with
an actual figure of $11.8 million against our estimate of $12.6 million. Actual
G&A was $2.26 million, under our figure of $2.3 million.
Production in F4Q 2023 was adversely impacted by 1) downtime at Delhi
Field properties where production was shut in for approximately one week to
upgrade the facilities and install a heat exchanger to increase plant efficiencies
during extreme summer and winter temperatures, and 2) downtime in the
Barnett Shale properties associated with extreme summer weather conditions
along with gathering line maintenance and compressor issues.
Based on discussions with its operators, EPM expects capital workover
projects to continue in all the fields. Overall, for fiscal year 2024, EPM expects
budgeted capital expenditures to be in the range of $4.0 million to $5.0 million.
In our view, this will be easily met with free cash flow, as we model $21.8 million
of free cash flow.
John White's price target for EPM is $9.50. < You can find much better small-caps than EPM in our Small-Cap Growth Portfolio.
My Top Small-Cap Pick is InPlay Oil, which has a lot more upside and it pays higher dividends. See my recent profile on InPlay Oil.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group