ROK Resources (ROK) Updated Profile - Apr 23
Posted: Sun Apr 23, 2023 3:18 pm
I have posted my updated profile for ROK to the EPG website. I believe it has the potential to be a triple for us.
ROK Resources is a recent addition to our Small-Cap Growth Portfolio that hosted a luncheon for us in Houston on April 18th. Their detailed presentation and the discussions that followed have significantly increased the confidence in my forecast/valuation model for ROK.
It is a Canadian Junior upstream oil & gas company that has current production of approximately 3,530 Boepd.
> It has a strong balance sheet and enough operating cash flow to fund their growth strategy. After closing several asset sales in April, the Company has a clear path to paying off all of their senior debt this quarter.
> They have announced a ten well development drilling program for 2H 2023 that is expected to increase production to ~4,500 Boepd in Q4 2023.
> With several hundred low-risk / high-return development drilling locations, I believe this company has a clear path to self-funded annual production growth of more than 25% for at least five more years, just within their current acreage holdings.
> Based on my forecast, ROK should generate over $45Cdn million of operating cash flow this year, which will more than cover their 2023 capital expenditures, estimated at $30Cdn million.
I will be traveling to San Diego on Monday for a conference speaking engagement. I will be checking the EPG Forum when I arrive at the hotel.
ROK Resources is a recent addition to our Small-Cap Growth Portfolio that hosted a luncheon for us in Houston on April 18th. Their detailed presentation and the discussions that followed have significantly increased the confidence in my forecast/valuation model for ROK.
It is a Canadian Junior upstream oil & gas company that has current production of approximately 3,530 Boepd.
> It has a strong balance sheet and enough operating cash flow to fund their growth strategy. After closing several asset sales in April, the Company has a clear path to paying off all of their senior debt this quarter.
> They have announced a ten well development drilling program for 2H 2023 that is expected to increase production to ~4,500 Boepd in Q4 2023.
> With several hundred low-risk / high-return development drilling locations, I believe this company has a clear path to self-funded annual production growth of more than 25% for at least five more years, just within their current acreage holdings.
> Based on my forecast, ROK should generate over $45Cdn million of operating cash flow this year, which will more than cover their 2023 capital expenditures, estimated at $30Cdn million.
I will be traveling to San Diego on Monday for a conference speaking engagement. I will be checking the EPG Forum when I arrive at the hotel.