http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230614:nPnYFb24a&default-theme=true
He makes some good points
Sbow Activist getting active
Re: Sbow Activist getting active
The numbers on SilverBow (SBOW) are very strong, but they definitely need to get out and tell their story to more people.
> 2022 Actuals were $15.51 EPS and $15.82 operating cash flow per share.
> My 2023 Forecast is $11.36 EPS and $20.03 operating cash flow per share (TipRanks CFPS forecast is $19.80) with 24.6% YOY production growth.
> My 2024 Forecast is $17.92 EPS and $33.26 operating cash flow per share (TipRanks CFPS forecast is $24.22) with 25.9% YOY production growth.
My current valuation of SBOW is $78.00/share, just 3.5 X annualized operating cash flow.
My take is that after they generated some significant oil production growth to match up with their guidance of close to 100% YOY oil production growth (7,430 BOPD in 2022) to guidance of 13,750 to 15,000 BOPD in 2023 more investors should notice how undervalued this stock is. Q1 oil production growth was 11,350 BOPD.
IMO the "Poison Pill" issue is not that big of a deal, and I would not want management to sell the company into today's depressed market.
I have updated my forecast/valuation model for SBOW and it will be posted to the EPG website soon, under the Sweet 16 tab.
I have attempted to contact their IR people several times about hosting a Houston luncheon for us, but got no response.
> 2022 Actuals were $15.51 EPS and $15.82 operating cash flow per share.
> My 2023 Forecast is $11.36 EPS and $20.03 operating cash flow per share (TipRanks CFPS forecast is $19.80) with 24.6% YOY production growth.
> My 2024 Forecast is $17.92 EPS and $33.26 operating cash flow per share (TipRanks CFPS forecast is $24.22) with 25.9% YOY production growth.
My current valuation of SBOW is $78.00/share, just 3.5 X annualized operating cash flow.
My take is that after they generated some significant oil production growth to match up with their guidance of close to 100% YOY oil production growth (7,430 BOPD in 2022) to guidance of 13,750 to 15,000 BOPD in 2023 more investors should notice how undervalued this stock is. Q1 oil production growth was 11,350 BOPD.
IMO the "Poison Pill" issue is not that big of a deal, and I would not want management to sell the company into today's depressed market.
I have updated my forecast/valuation model for SBOW and it will be posted to the EPG website soon, under the Sweet 16 tab.
I have attempted to contact their IR people several times about hosting a Houston luncheon for us, but got no response.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group