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I3 Energy taking a bold step with Canadian acquisitions suggests broker

i3 Energy is seeking to transform itself into a consolidator of long life/low decline conventional production assets in Canada.

i3 Energy PLC -

I3 Energy PLC (LON:I3E) is undertaking a bold change of strategy with its acquisition of Gain Energy and Toscana in Canada, according to Mirabaud.

Through the deals, i3 Energy is seeking to transform itself into a consolidator of long life/low decline conventional production assets in Canada.

These deals will enable it to offer shareholders a dependable and growing stream of dividends.

Combined the two companies bring around 12,000 barrels per day equivalent at a cost of US$62m in total.

“Talks around these acquisitions started in Q1 2020 and were consummated right at the time global oil prices were in free fall,” said the broker.

 “As a result, the deal metrics are particularly attractive, with i3 paying less than 2x forward 12-month EBITDA and 0.5x our PV10 [cash value] of the PDP [producing] reserves.”

“As well offering tremendous value, the acquired assets are also carbon-neutral, thanks to a stake in the world’s fourth-largest Carbon Capture projects – placing i3 at the cutting edge of the green revolution in the E&P space.”

Earlier, I3 Energy disclosed it was acquiring Gain for US$58.8mln.

Shares in I3 are suspended on AIM pending a re-admission document.
 

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Price: 6.1 GBX

AIM:I3E
Market: AIM
Market Cap: £53.86 k
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i3 Energy team discuss acquisition of Toscana Energy and new growth business

i3 Energy Plc's (LON:i3E) Majid Shafiq and Graham Heath speak to Proactive London's Andrew Scott following the news this morning of a new strategic acquisition - picking up producing assets in Canada. i3E's secured terms to acquire Toronto listed Toscana Energy Income Corporation which owns...

on 30/3/20

2 min read