- Senex Energy just completed a transformational sale of its oil assets and is now a pure gas player.
- The market seems to be missing the strong expected cash flows of the gas sales and the net cash position of the company.
- Senex plans to triple its production by 2025, and will be able to bankroll this expansion using its own incoming cash flow.
- Given the strong balance sheet, high reserves and strong margins, I think Senex Energy is worth at least A$7/share, and likely even more.
- The downward risk is minimal as the project is already in production, and Senex Energy has a net cash position on the balance sheet.
For further details see:
Senex Energy: Self-Funded Growth Provides An Excellent Risk/Reward Ratio With 143% Upside Potential