Valeura Energy: Low Debt, Healthy Oil Pricing

Vlae Kershner 3.07K Followers Follow Summary Valeura Energy achieved standout realized oil prices and cash flow in Q2, driven by Gulf of Thailand production priced off Dubai benchmarks. Q2 results were exceptional but likely non-repeatable, with adjusted cash flow from operations of $154M ($77.10 per barrel) and free cash flow of $105M. Production from small, rapidly depleting basins requires constant replacement; the upcoming Wassana redevelopment (7.5 mbbls/d) is expected to offset declines. The company's asset-light business model means it has almost as much cash on the books as its total liabilities. Saudi Aramco led realized prices but suffered a 28% production drop; other companies saw lower pricing. Suphanat Khumsap/iStock via Getty Images On the shelf while recovering from pneumonia, I decided to look through the recent earnings reports of oil companies to see which have been getting the best prices since the U.S.-Iran war began. My theory was that since diminished flows This article was written by Vlae Kershner 3.07K Followers Follow I am a 35-year stock market investor, MBA, and retired reporter and editor for the San Francisco Chronicle. My primary style is a mix of growth and income, with attention to special situations. Analyst’s Disclosure: I/we have a beneficial long position in the shares of VLE:CA, CRC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.