salvation
10 March 2022
Earnings reflect interest sell down: $37m profit booked
CTP reported 1H FY22 underlying EBITDAX of $10.0m and reported NPAT of $30.5m,
both in line with our expectation. Reported NPAT included a $36.6m profit booked
(previously communicated) on the partial interest sell-down of the company’s operating
assets completed in October 2021. A subsequent $29.0m debt repayment was made,
supporting a reduction in net debt to $12.4m at year-end ($31.3m at 30 June 2021), as
previously disclosed. Discussions are underway to extend the company’s outstanding
facility maturity date, which is due to expire on 30 September 2022. EPS changes in
this report mostly reflect changes to exploration expense assumptions: FY22 now -
0.9cps (previously -0.6cps); FY23 now 0.3cps (previously 0.5cps); FY24 +3%.
Near-term exploration opportunities present value catalysts
We see several value catalysts for CTP over the next 12 months. A primary focus for
the company is its two well exploration campaign at Palm Valley and Dingo. Drilling of
these wells is scheduled to commence in 2H FY22 and will target up to 96PJ (net to
CTP) of mean prospective resource. In February 2022, the company entered into a
farm-out agreement with Peak Helium (Peak) relating to three of its exploration permits
in the Amadeus Basin, that are prospective for gas, hydrogen and helium. Under the
agreement, Peak will free-carry CTP on its share of costs (capped at $20m gross per
well) for two of three planned exploration wells to be drilled in 2023. At Range Gas,
expect news flow relating to the appraisal of two new step-out wells drilled in February
2022. CTP is also considering advancing the Mamlambo oil prospect (18MMbl mean
prospective resource).
Investment thesis: Buy, Target Price $0.19/sh
CTP is in a strong position to grow gas Reserves and production into a tightening east
coast gas market. The recent sell-down has strengthened CTP’s balance sheet, and
will support exploration activity in the Amadeus Basin. Appraisal of the Range Gas
project alongside joint venture partner Incitec Pivot Ltd (ASX:IPL, not rated) further
diversifies CTP’s growth prospects. Our Buy recommendation is unchanged.an extract Bell Potter research
DYOR
i do NOT hold this share ( but do hold BFG )
might be of interest for any holders that still read this forum