Lemming99

 One of my key reasons to invest in a company is their ability to create free cash flow. At this time it's more important than ever. I do have some investments in companies that don't produce free cash flow (yet) such as Aminex, Eve Sleep and Independent Oil & Gas. I'm just doing some analysis on the companies I invest in and thought I would share the findings. Two of the companies that I'm particularly interested in are Tullow Oil and Gulf Keystone Petroleum . Those links take you to my blog posts where I'm happy to share my research (with further evidence based links to company data) Each company produces their data in a different way, using different ratios. One of my objectives for this blog post was to present companies side by side with a single % figure for their Free Cash Flow (FCF) divided into their marcap and a single % figure for their dividend divided into their marcap. I've used last year's data for most of the following companies, but for...

Followers of Genel Energy will know that they spent $1.3bn on a couple of gas and oil assets in Northern Iraq. These fields are Miran and Bina Bawi. Genel had been carrying a lot of weight on its balance sheet for Miran and in the most recent financial year they wrote off $424m which is about 140% of their EBITDAX. As such they didn't make a profit last year. The purpose of this article is to look at a price / earnings ratio that ignores this one off write down. (By the way, the gas and oil is still in Miran; just not going to be produced anytime soon.) At the bottom of page 10 in this presentation  Genel talk about making $20m per month profit at an Oil Price (OP) of $60 increasing to around $30m per month at an OP of $80. I would say that the OP has averaged $66 or $67 this year, let's say $66. As such this would indicate that Genel are making $23m a month profit in the first 4 months. We know that Free Cash Flow was $44m for Jan/Feb according to this announcement . ...