In today’s briefing:
- ITMG – Q1 2023, Decline in Coal Prices And Increasing Costs Weigh on Profits, Yield Sturdy >20%
- W&T Offshore, Inc – Initiating Coverage: Cash Provides Flexibility
ITMG – Q1 2023, Decline in Coal Prices And Increasing Costs Weigh on Profits, Yield Sturdy >20%
- Indo Tambangraya Megah (ITMG IJ) suffered a >30% decline in market capitalization owing to the drastic drop in coal prices from 400 USD/ton to 160 USD/ton.
- At a 1.9 bn USD market cap, the company can generate 700 mn USD profit at current coal prices/paying a 5000-6000 Rph dividend equating to a 20-25% yield.
- Also, with 1.0 bn USD of net cash after accounting for the dividend liability (>50% of the market capitalization is cash), there is an excellent margin of safety.
W&T Offshore, Inc – Initiating Coverage: Cash Provides Flexibility
- W&T Offshore is an independent oil and natural gas exploration and production company focused on extracting value from producing assets in the US Gulf of Mexico.
- The company has plied the Gulf since its founding 40 years ago.
- High-quality reservoir rock properties and the tendency for reservoirs in the Gulf of Mexico to outperform original reserve estimates are key drivers of management’s affinity for the basin. Proved reserves (1P) often expose the company to embedded optionality in probable and possible reserves that can be captured over time through well performance with modest incremental capital investment.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
