1H FY22: Busy year of exploration ahead

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    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

    1 like
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