Tag: Motley Fool

The Santos Ltd (ASX: STO) share price is in the red today amid falling oil prices.

Santos shares are currently trading at $7.86, a 0.76% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.74% in the green.

Let’s take a look at what is happening at Santos.

Oil prices

Energy producers, including Santos, could be suffering due to turbulent oil prices. Brent Crude oil prices finished 2% lower in the United States on Tuesday amid Ukraine and Russia peace talks, Reuters reported. New COVID-19 lockdowns in China also sparked speculation demand for oil could be lower.

However, the oil price is now starting to pick up. Brent Crude is climbing 0.76% to US$111.07 a barrel, while WTI Crude Oil is up 0.78% to US$105.02 a barrel, according to Bloomberg.

Santos is not the only ASX energy share having a day in the red. The S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.88% at the time of writing. Beach Energy Ltd (ASX: BPT) shares are down 0.62%, while the Woodside Petroleum Limited (ASX: WPL) share price is 0.52% lower.

Climate report

In other news, Santos has just released its 2022 climate report. The strategy sets out the company’s climate transition strategy to become a net-zero emissions energy and fuels company by 2040.

This includes a plan to:

• Cut absolute emissions by 30% by the year 2030
• 40% reduction in emissions intensity
• Scope three target to reduce customer carbon dioxide emissions by 1.5 million tonnes per year

Further, Santos will only sell products to customers from countries that have a net-zero commitment or have signed the Paris agreement.

The company said final investment decisions on new offshore greenfield projects from 2025 will require abatement or offset of reservoir carbon dioxide emissions.

Commenting on the news, Santos chief executive officer Kevin Gallagher said the company is “well positioned” to decarbonise the natural gas business and generate new revenue streams via carbon solutions including capture and storage. He added:

It is vitally important that new supply investment happens in a sustainable way. Companies like Santos, which are publicly listed, subject to ESG scrutiny by their investors and which report transparently on carbon emissions and their climate transition plans, are best placed to supply critical fuels such as oil and gas more sustainably, striving for lower emissions intensity and better environmental outcomes.

Divesting assets and driving investment in new supply to less transparent producers will not reduce global emissions or advance the transition to Net Zero.

Santos share price snapshot

The Santos share price has risen 10% in the past 12 months, while it has gained 24% year to date.

In contrast, S&P/ASX 200 Index (ASX: XJO) has returned just under 1% in 2022 so far.

In the last month, Santos shares have soared nearly 10%.

Santos has a market capitalisation of about $26.6 billion based on the current share price.

The post Why is the Santos share price sliding today? appeared first on The Motley Fool Australia.

More reading

• Own ASX 200 energy shares? Here’s the latest on the 2022 crude oil disruptions
• 5 things to watch on the ASX 200 on Wednesday
• Global poster child? Why this fundie is bullish on the Santos share price
• 5 things to watch on the ASX 200 on Tuesday
• Here’s why Macquarie just upgraded the Santos (ASX:STO) share price

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/4JfXQHN

The Neometals Ltd (ASX: NMT) share price has accelerated in the month of March despite heavily backtracking in recent times.

Over the month, the advanced materials company’s shares surged 25% following a couple of positive announcements by Neometals.

At the time of writing, the advanced materials company’s shares are swapping hands for $1.675, up 1.21%.

What’s been driving Neometals shares higher?

Investors appear ecstatic with the company’s progress, sending the Neometals share price to a record high of $1.875 last Wednesday.

This has come off the back of strong gains particularly on 14 March when Neometals announced a possible partnership between Mercedes-Benz AG’s wholly-owned subsidiary, Licular and Primobius.

Incorporated joint venture company, Primobius is equally owned by Neometals and SMS group.

Following the announcement, Neometals leapt 12.59% on the day to finish at $1.655 apiece.

However, this was short-lived as investors sold off the company’s shares the next day, registering an 8.76% loss.

Nonetheless, Neometals shares regained composure thereafter with a 20% increase across 5 consecutive trading days from 17 to 23 March.

As mentioned earlier, late last week and on Monday saw the company’s share price tank by more than 12%.

Although, yesterday’s update from Neometals that Primobius has opened a commercial lithium-ion battery recycling plant saw its shares break the negative trend. On Tuesday, Neometals shares lifted 2.16% to finish at $1.655.

The company noted that operations are being planned for 10,000 tonnes per day in Q2 2022 pending receipt of an operating permit.

Neometals share price snapshot

Over the past 12 months, the Neometals share price has rocketed by 360% for investors.

When looking at year to date, its shares are up close to 20% for the period.

Neometals has a price-to-earnings (P/E) ratio of 31.20 and commands a market capitalisation of roughly $924.01 million.

The post Why has the Neometals (ASX:NMT) share price leapt 25% in March? appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries shares smashing 52-week highs on Wednesday
• Neometals (ASX:NMT) shares surge 12% on plans to partner with ‘one of the greatest names in the automobile industry’
• Here’s why the Neometals (ASX:NMT) share price surged 6% on Friday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/t0QESX5

The Qantas Airways Limited (ASX: QAN) share price is in the green on Wednesday, despite no price-sensitive news having been released by the company.

Though, the airline isn’t alone in its gains. It’s joined by some of its fellow S&P/ASX 200 Index (ASX: XJO) travel shares.

At the time of writing, the Qantas share price is $5.28, 2.52% higher than its previous close.

For context, the ASX 200 is also up today, having gained 0.78%.

Let’s take a closer look at the latest news from the flying kangaroo and its performance on the ASX today.

Why is the Qantas share price gaining on Wednesday?

The Qantas share price is flying high today despite no news having been released to the market.

It’s joined in the air by other ASX 200 travel giants Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB).

They are also up 1.25% and 1.78%, respectively and for no obvious reason.

However, there’s been some positive-sounding whispers from the airline’s camp recently.  

While it likely hasn’t impacted its share price, Qantas has been dropping hints that seem to point towards its recovery from the COVID-19 pandemic.

On Monday, Qantas chief customer officer Stephanie Tully noted that bookings for flights between Melbourne and Los Angeles now exceed pre-COVID levels.

Previously, the airline noted bookings for iconic international destinations London and Hawaii are also above pre-COVID levels.

That same day, QantasLink CEO John Gissing recognised a “huge surge in demand for domestic tourism”.

Gissing’s comments came after the airline said last week that it expected this year’s Easter period to bring more than 110% of its pre-COVID domestic capacity.

That’s not the only news that might have drawn attention to Qantas’ stock today. Last night’s federal budget saw the fuel excise halved for the coming six months.

Of course, the prospect of a boost to Qantas’ bottom line might have initially excited the market. However, the change likely won’t impact Qantas much.  

Aviation fuels are specifically exempt from the reduction.

Right now, the airline’s stock is currently 5.4% higher than it was at the start of 2022.

The post Why is the Qantas share price lifting today? appeared first on The Motley Fool Australia.

More reading

• Expert reveals 3 ASX shares to watch following tonight’s federal budget
• Is Qantas an ASX dividend share?
• What was the highest ever Qantas share price?
• Own Qantas shares? Here’s how the airline is planning to profit from NFTs
• Is the Qantas (ASX:QAN) share price about to soar 40% higher?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/RVI4xlT

The S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday. In afternoon trade, the benchmark index is up 0.75% to 7,520.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

88 Energy Ltd (ASX: 88E)

The 88 Energy share price has crashed 50% to 1.65 cents. This follows disappointing results from the Merlin-2 wireline logging program. The results from the wireline program have demonstrated that target zones have lower than anticipated porosity/permeability, resulting in difficulty obtaining fluid samples of any significance.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price is down 2% to $1.62. Investors have been selling this gold miner’s shares after Bell Potter downgraded them this morning. According to the note, the broker has downgraded Gold Road’s shares to a hold rating with a $1.70 price target. It made the move on valuation grounds after its shares appreciated significantly since the start of February.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price has fallen 2% to 52 cents. This morning Macquarie responded to the pharmacy chain operator’s full year results by maintaining its neutral rating but cutting its price target to 52 cents. Macquarie highlights that management has advised that Sigma’s ERP software implementation is having issues.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down 1.5% to $3.21. Investors have been selling this casino and resorts operator’s shares after it revealed that it has been hit with a class action. According to the release, Slater & Gordon Limited (ASX: SGH) has served Star with a claim alleging that the casino operator failed to comply with continuous disclosure requirements and engaged in misleading or deceptive conduct between 29 March 2016 and 16 March 2022.

The post Why 88 Energy, Gold Road, Sigma, and Star shares are dropping appeared first on The Motley Fool Australia.

More reading

• Star Entertainment (ASX:SGR) share price slides as bad news keeps rolling in
• This ASX energy share just plunged 52%. Here’s why
• Profits slide 54% in FY21 sending Gold Road (ASX:GOR) share price tumbling on Monday
• Star Entertainment (ASX:SGR) share price slips after CEO steps down
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/bePx1nr

Shares in The Star Entertainment Group Ltd (ASX: SGR) are inching lower again on Wednesday and now trade at $3.23 apiece in afternoon trade.

The group is coming off a whirlwind where its former managing director and CEO, Matt Bekier, resigned earlier this week.

Star is also under fire for its anti-money laundering (AML) compliance and ability to prevent potential fraud from occurring at its licensed premises in an ongoing inquiry.

The bad news keeps on rolling in today, with the group announcing it has been served a class action in the Supreme Court of Victoria.

What is going on with Star Entertainment today?

The spillover from an ongoing review into Star’s operations has led shareholders to believe the group wasn’t transparent in its dealings with questionable figures and practices.

As The Motley Fool’s Brooke Cooper reported earlier this week, Star’s “former chief risk officer Paul McWilliams told the inquiry that Bekier “was in … a sulk” when presented with the report.”

“McWilliams also said that the CEO appeared to believe that KPMG didn’t know what they were talking about”.

Now it’s apparent that stakeholders – like regulators – have had enough and are demanding more answers from the company.

“The Star Entertainment Group has been served by Slater & Gordon with a statement of claim for a securities class action in the Supreme Court of Victoria,” it said in a statement today.

“The claim alleges The Star failed to comply with continuous disclosure requirements and engaged in
misleading or deceptive conduct between 29 March 2016 and 16 March 2022 through various alleged
disclosures or non-disclosures about its systems, controls, operations and regulatory risks,” it read.

Each of the allegations is in reference to the ongoing ILGA inquiry and media reports, Star confirmed.

“The Star intends to defend the proceedings”.

Star Entertainment share price snapshot

In the last 12 months, the Star Entertainment share price has collapsed by 15% and is now 12% down for the year to date.

In the previous month, things have worsened and shares are down a further 3.5% at the time of writing.

The post Star Entertainment (ASX:SGR) share price slides as bad news keeps rolling in appeared first on The Motley Fool Australia.

More reading

• Star Entertainment (ASX:SGR) share price slips after CEO steps down
• Why is the Star Entertainment (ASX:SGR) share price slumping to fresh 52-week lows?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/CdlgnUr

The Culpeo Minerals Ltd (ASX: CPO) share price is rocketing higher on Wednesday after the company announced it has struck copper.

The first hole of the maiden drilling program at the company’s Lana Corina Project found the visual copper mineralisation.

At the time of writing, the Culpeo Minerals share price is 30 cents, 140% higher than its previous close.

However, at its intraday high, the company’s stock was swapping hands for 45 cents – representing a 260% surge.

Let’s take a closer look at the news driving the copper explorer and developer’s share price sky high.

Culpeo Minerals share price takes off on copper find

Shares in Culpeo Minerals are flying off the shelf on news that’s boosting hopes the company’s recently secured project could house a significant copper deposit.

The first hole drilled by the company at the site has intersected visual copper mineralisation.

The mineralisation is hosted in sheeted veins and breccia pipes from around 50 metres down hole to a depth of 200 metres.

Culpeo Minerals managing director Max Tuesley commented on the find:

We are excited about the intersection of significant amounts of copper sulphides in this first hole.

This provides further confidence in the prospectivity of Lana Corina and its potential to host a significant copper deposit.

[We] view Lana Corina as a key component of our high-quality copper portfolio in Chile.

For now, the company is continuing to drill the eight-hole maiden program. It also expects assay results will be complete in the next six weeks.

The company entered an agreement to acquire up to 80% of the project, located in Chile, earlier this month. It began the drilling program immediately after securing the rights to a holding in the project.

Today’s gains see the Culpea Minerals share price 82% higher than at the start of 2022.

The post Here’s why the Culpeo Minerals (ASX:CPO) share price is exploding 140% today appeared first on The Motley Fool Australia.

More reading

• Star Entertainment (ASX:SGR) share price slides as bad news keeps rolling in
• Why is the Life360 (ASX:360) share price rocketing 16% higher?
• Own AGL shares? Your dividend arrives today
• VGI Partners (ASX:VGI) share price rockets 23% after announcing this key update
• This ASX energy share just plunged 52%. Here’s why

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/yPQj5ga

It has been a very good day for the Life360 Inc (ASX: 360) share price.

At one stage today, the location technology company’s shares were up as much as 16% to $6.28.

The Life360 share price has given back some of these gains but remains up 12% at $6.07 at the time of writing.

Why is the Life360 share price shooting higher?

The catalyst for the rise in the Life360 share price on Wednesday has been a rebound in the tech sector. For example, in early afternoon trade, the S&P ASX All Technology index is up a sizeable 3.2%.

The gains have been strongest among loss-making tech shares, which were hit the hardest following the tech selloff earlier this year.

One leading broker that would approve of the Life360 buying frenzy today is Bell Potter. Earlier this month, the broker named the company as one of its top three picks in the tech sector.

It commented: “Life360 (360): Also remains a key pick and we believe has been oversold as, despite currently being loss making, has ample cash to fund it through to cash flow breakeven or positive in 2023 or 2024 while maintaining strong top line revenue growth and realising the synergy benefits from the recent Tile acquisition.”

Bell Potter has a buy rating and $10.00 price target on its shares.

The post Why is the Life360 (ASX:360) share price rocketing 16% higher? appeared first on The Motley Fool Australia.

More reading

• 2 beaten down ASX growth shares analysts believe are great value
• Life360 (ASX:360) share price gives back 14% gain, but this broker remains bullish
• ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
• 3 ASX growth shares brokers rate as buys
• Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/5XIGJrN

The AGL Energy Limited (ASX: AGL) share price may be many things to many investors, but it is at least still an ASX dividend share.

AGL has been one of the most disappointing performers on the S&P/ASX 200 Index (ASX: XJO) in recent years. It seems like an eternity ago, but it was only back in 2017 that AGL was a $28 share. Today, this energy giant is going for $7.72 at the time of writing.

That represents a 21.4% loss over the past 12 months, a 70.7% slide over the past five years and more than 72% away from that all-time high. In fact, if one had owned AGL shares since January 1999, they would still be underwater by around 3.7% today from a capital standpoint.

Saying all that, the company is up a robust 26% so far in 2022 so it’s not all bad news.

AGL to pay out interim dividend today

But AGL was, and is still, an ASX dividend share. And today happens to be payday for AGL shareholders. So let’s take a look at the dividends that investors can look forward to seeing in their bank accounts today.

AGL announced today’s dividend during its half-year earnings report that was released back in February. These earnings were something of a mixed bag. Although AGL reported revenue growth of 6% for the period, it also came up with a 21% fall in underlying earnings as well as a 41% drop in underlying profits.

AGL did announce an interim dividend though. But it perhaps wasn’t quite what investors were hoping for. AGL’s previous interim dividend was a 41 cents per share payment, consisting of 31 cents per share in ordinary dividends, and a 10 cents per share special dividend.

The interim dividend that investors will receive today, however, only comes in at 16 cents per share, a 60% reduction from last year. Like most of AGL’s recent dividends, it will not come franked.

So AGL investors can look forward to receiving this dividend today, after the company traded ex-dividend on 23 February.

At the current AGL share price, this ASX 200 company has a trailing dividend yield of 6.48%.

The post Own AGL shares? Your dividend arrives today appeared first on The Motley Fool Australia.

More reading

• It’s payday for Wesfarmers shareholders today. Here’s the deal
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
• 5 things to watch on the ASX 200 on Wednesday
• Buy or sell? ASX experts rate the CBA share price for April
• These 3 ASX 200 shares are topping the volume charts this Tuesday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/GmpdS43

Shares in VGI Partners Ltd (ASX: VGI) are soaring 26% higher at the time of writing to now trade at $4.50 apiece.

Investors are responding positively to an announcement released by the company regarding a proposed merger with an alternative investment manager.

VGI shares shot north immediately after the announcement and just nudged past their intraday high, as investors continue to pile in on tremendous volume at time of writing.

What did VGI announce?

Back in January VGI advised it had entered into exclusive talks for a potential merger with specialist alternative investment manager Regal Funds Management Pty Limited.

Regal is an alternative investments specialist and the investment manager of the publicly listed Regal Investment Fund (ASX: RF1).

Today VGI advised it had entered into a merger implementation deed with Regal Funds Management, whereby on completion of the merger, VGI will acquire 100% of the shares in Regal.

For their consideration, Regal shareholders will receive an issue of new VGI ordinary shares “to create a merged business,” the company says.

“It is expected that immediately following implementation of the Merger existing VGI shareholders will represent approximately 33.3% and existing Regal shareholders approximately 66.7% of the Merged Entity,” it added.

Speaking on the announcement, founder and CIO of VGI, Robert Luciano, said the opportunity was an “exciting development” for all those involved.

“Regal’s long track record in hedge fund, private market and real asset investments really complements VGI’s extensive capabilities in global long/short investing, with both businesses able to benefit from a centralised corporate platform, operational infrastructure and sales and marketing capability,” he commented.

“For VGI shareholders, the transaction provides an attractive opportunity to gain access to a scalable, growing and well-diversified investment management business and really represents a new chapter of growth for shareholders of the merged group”.

A merging of giants

VGI said it will likely be renamed and will remain publicly listed on the ASX, albeit with a new ticker. Plus, if successful, the move could create an alternative investment juggernaut, VGI says, forming part of an extensive “strategic rationale”.

“The VGI Board of Directors believes that the Merger has the potential to deliver several attractive benefits to VGI shareholders,” it remarked.

“The Merger will combine two of Australia’s most recognised and successful hedge fund managers and is expected to create a market-leading provider of alternative investment strategies with total funds under management of approximately A$5.6 billion”.

Not only that, but additional benefits include “exposure to a diversified and growing platform of hedge fund…deep industry experience, networks, and established investment track records of two industry leaders,” the company notes.

This, alongside “accessing Regal’s highly developed corporate platform…and providing an opportunity for Robert Luciano and the VGI investment team to leverage additional resources from the merged group,” just to name a short few.

VGI shares have struggled this year to date and are down more than 5% in that time, but have snapped back hard in the previous month to trade 11% higher.

The post VGI Partners (ASX:VGI) share price rockets 23% after announcing this key update appeared first on The Motley Fool Australia.

More reading

• This ASX energy share just plunged 52%. Here’s why
• Why Eagers Automotive, Firefinch, Latin Resources, and Piedmont Lithium are rising today
• Kogan (ASX:KGN) shares spike another 6% post federal budget
• Own ASX 200 energy shares? Here’s the latest on the 2022 crude oil disruptions
• Why is the Firefinch (ASX: FFX) share price soaring 12% to a 14-year high?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/CZALRIE

The 88 Energy Ltd (ASX: 88E) is having a tough day on the market in response to a company update.

The company’s shares are currently swapping hands at 16 cents apiece, a 51.5% fall. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.74% at the time of writing.

So what news did this ASX energy share deliver to the market?

Merlin-2 well results ‘disappoint’

88 Energy is an oil exploration company with projects on the Alaskan Central North Slope and Permian Basin in Texas, United States.

Today, the company advised it was unable to obtain fluid samples from target zones in the Merlin-2 well in Alaska. This was despite encouraging oil shows and logging while data drilling.

Initial wireline logging analysis showed reservoir quality at the well is “insufficient” to justify a production test”.

The main objective of the Merlin-2 well operations was to collect hydrocarbon samples from the target zones. However, this was not to be due to the tightness of the formation at the location.

Future operations at the Merlin-2 well will involve plugging and abandoning the well and leaving the drilling area.

Commenting on the results, managing director Ashley Gilbert said:

We appreciate that this result will be disappointing news for shareholders, in particular that we were again unable to obtain a fluid sample at surface or perform a flow test.

However, we will now take the necessary time to fully analyse the data from the Merlin-2 well. This will provide a basis upon which the company can provide further updates on the future potential appraisal program for the Project Peregrine acreage.

In 2021, the company paid off US$16.1 million in debt from the sale of Alaskan oil and gas tax credits. Speaking on the financial position of the company today, Gilbert added:

88 Energy remains in a strong financial position, post the Merlin-2 well, with zero debt and a healthy cash balance that will be further strengthened with projected cash flows from the recently acquired portfolio of Texas production assets, project Longhorn.

Share price snapshot

The 88 Energy share price has gained dropped 62% in a year, sliding 34% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) index has returned about 12% over the past year.

The company has a market capitalisation of about $262 million based on the current share price.

The post This ASX energy share just plunged 52%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why the 88 Energy (ASX:88E) share price has jumped 29% in a week

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/YgA0sZH