Kerm/ First - thanks for your followup.|
Second - thanks two for your daily letter.
Third - numbers..........................................
I just finished some number crunching and here's a summary which may be a tool for general comparison purposes.
3Q reports for 25 situations were used and the 3Q and 9month boepd were converted to a total barrel equivalent basis using 92 days for the July 1 - Sept. 30 period and 279 days for Jan. 1 to Sept. 30.
3Q Revenue and 3Q Cashflow numbers were compiled. 3Q cashflow was divided by 3Q total BOE for each situation to give a $CF/BOE.
Same thing was also done with the 9month numbers to obtain a $CF/BOE number. As well, the total CF for 3Q was divided by total Revenue for 3Q to give a % conversion of cashflow from revenue number.
All barrel of oil equivalents were done using 10:1 assumptions. Most revenues included royalties however I did notice at least one situation (SEH Startech) listed net (after unspecified royalties) revenue. In that case the $CF/BOE number will be slightly biased upward.
Situations crunched, by symbol, included (descending order based on $cf/boe for 3Q'99) SME, BNP, THY, TPH, CYZ.A, TET, CNQ, AVO.a-ase, SEH, VRM, ZAR, ENL, RES, TLM, POU, CXY, MEL,GOU, BKP, NRK, NPP, ULP, TRX, MXP and MGY.
SME-tse Storm (at 3Q, before recent acquisition announcement) had an indicated $18.12CF/BOE in 3Q'99 (2210 boepd avg.) for a 59.64% conversion of revenue to cashflow.
At other end of scale MGY-tse Magin had $7.73CF/BOE in 3Q'99 (8323 boepd avg.) for a 34.63% conversion of revenue to cashflow.
AVERAGE for 25 noted situations during 3Q'99 was $13.14CF/BOE and 53.24% conversion of revenue to cashflow.
During 3Q'99 TET-tse Tethys converted 68.58% of their $5,489,615 revenue into cashflow.
Tired of the numbers yet? I almost am........
For the 9 MONTH PERIOD to Sept. 30 the AVERAGE was $10.78CF/BOE based on an average 50.67% conversion of revenues to cashflow.
BNP-tse Bonavista was top of the scale with $15.52CF/BOE which was 63.51% of the $46,519,000 revenues (6822 boepd avg.) turning in to cashflow.
At the other end TRX-tse Torex had $4.96CF/BOE or 25.66% of $5,086,000 revenues (943 boepd avg.) becoming cashflow.
Hope the averages are of use when comparing situations but make sure any of the above numbers are verified if any of the information is being used for decision purposes........ other things such as debt, reserves growth, etc. also need to be considered.