View From Reader's Windows & Desks: Isolation Edition. No 12 Stuart in Pendle Hill, North East Lancashire
Hello, Share Smashers. The move by BP (BP.) to sell some of its North Sea assets to Premier Oil (PMO) may boost the share price of both companies. Premier will take over the Andrew platform and BP's controlling stake in five surrounding fields, as well as its quarter stake in the Shell-operated Shearwater field. BP will raise £474 million from the deal. The Andrew platform is 140 miles northeast of Aberdeen. Why is BP doing this?...
Premier Oil (PMO) has always been highly geared towards movements in the oil price, so it is hardly surprising that its share price has been dropping recently.
Having asked for readers tips for 2018 for the amazing prize of a meal with Tom Winnifrith (or the chance to fob it off on someone you don't like) HERE, the following is a monthly update on performance (to be eligible needed to have selected, on a per username basis, a buy & sell pick from the LSE or AIM Casino and the stocks not to have been suspended at the commencement of 2018)...
Hello, Share Crunchers. With the oil price soaring and possibly targeting $70 a barrel, it’s worth looking at a few of the less gigantic producers. Today I give you Premier Oil (PMO) which does both oil and gas with operations based in some interesting places.
Premier Oil (PMO) is a company that I have been bearish on so far in 2017, but it has now reached a level where I would consider changing my stance to a buy, or at the very least one to watch closely for when the recent trend changes direction and it starts to bounce.
I resisted the temptation to short Premier Oil (PMO) a year ago, along with Afren, Gulf Keystone and Petroceltic as it was never in the same basket case league as that lot. I even hitched a brief ride North as it became clear that a wipe out was not going to happen. (In case I come across as arrogant or smug I should declare that I was short Hurricane Energy at the time which more than did for the Premier rise)
The market doesn’t like uncertainty, and that is why Premier Oil (PMO) has been continuing to under-perform in comparison to some of its peers in the oil and gas producing sector in terms of the share price.
Like many producers, Premier Oil (PMO) has been struggling with debt since the oil price crashed a few years back. Some have managed to refinance the debt on their balance sheets, but for Premier the process has been dragging on for far longer than many expected and hasn’t exactly helped sentiment surrounding the company. Following today’s update though it looks as though that is finally about to be resolved.
Hello Share Shufflers. Though I hold quite a few mid-size oil companies, I do not have a stake in Premier Oil (PMO). Perhaps I should, though. The company has been in final stages of financing with banks and bond holders. That signals that the big lenders have faith in the company.
This morning brought news that the covenant test for Premier Oil (PMO) has been delayed for the third time. While the support from the lending group is to be welcomed, the continuing need for deferral proves that the company's equity holders remain on a financial tightrope.
Premier Oil (PMO) has just released its interim results, but I’m not convinced they are quite as rosy as they might initially appear at first glance.
Premier Oil (PMO) is drowning in $2.6 billion of debt but when you owe that much it is not you who is in trouble but the lenders. And so today we are told that those who are really screwed by the situation are continuing to pretend everything is okay. "Fingers in ears can't hear you, pillow on head, can't see anything wrong". Whatever.
Today's assassination with a pen from Zac Phillips at SP Angel is on Premier Oil (PMO) with a stark warning that things may be an awful lot worse than any share price rally might imply. Ouch. Zac writes:
I previously noted the importance of a successful conclusion to Premier Oil’s (PMO) bank lender discussions, and made the case that a very large equity raise was probably needed to put the company back on a sound footing. This morning finally sees some news on those lender discussions, made necessary by Premier’s inability to satisfy its covenants.
Yesterday in Part 1, I outlined the gravity of the situation facing Premier Oil’s (PMO) equity investors. In that piece, I presented my view that the purchase of E.ON’s North Sea assets was an attempt to temporarily fix a covenant breach situation, but that any profits it generates are unlikely to be material against Premier’s debt pile.
Anyone lucky enough to buy independent exploration and production company Premier Oil (PMO) around the January lows achieved a two-bagger in quick time as the shares rallied rapidly from around 20p to achieve a high of 75p last month. It is currently capitalised at £360 million ($500 million) and is a favourite on the bulletin boards. Sadly, it’s not yet clear that Premier has its house in order. There could be some serious pain yet to come.
Premier Oil (PMO) has today served up full year numbers and all things considered it is not quite the horror show it could have been. The E.On acqusition looks transformational but hang on...what is this in the final sentence of the opening verbage:
On Monday Premier Oil (PMO) announced the sale of its Norwegian assets for $120million cash. The company will use the money to help pay down some of its sizeable debts. According to its half yearly report, Premier had net debts of just over $2billion versus cash and undrawn debt facilities of $1.5billion. The business is clearly struggling, as reflected by its share price performance over the last eighteen months. On the verge of tumbling out of the FTSE250, Premier trades at 74p (last seen) and has a market cap of £376million. If things don’t improve for Premier in the near’ish term, this could have a nasty effect on Rockhopper (RKH) and, more specifically, commercialisation of the Sea Lion discovery in the North Falklands Basin.
If you want me to analyse a stock for you just drop me a line at email@example.com - Today I look at shares of Glencore (GLEN), Plethora Solutions (PLE), Premier Oil (PMO) and offer some share price targets.
With so many oil companies having been hit so hard it can be difficult to pick which ones offer the best value and a good chance of recovery. With its share price currently within 20% of the lows we saw when oil plummeted to around $45 late last year, I think Premier Oil (PMO) is worth a look.
FTSE-250 constituent Premier Oil (PMO) has this morning noted that exploration well 16/4-6S on the Luno II prospect (Premier: 30%) in the Norwegian North Sea “has resulted in a potentially significant oil discovery”. This has helped Premier’s shares up just over 5% to 381.4p at the time of writing. This is up from late 2008 lows of little more than 116p and 336.5p at which the shares commenced 2013. They did however hit 535p in early 2011 and the following updates on today’s announcement and its significance from an investment point of view.
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