CVN - Carnarvon Energy

[Als2own]

Reading the quarterly out this week was like reading the same book over and over as nothing has changed since the last one with a few numbers altered to make it look like they’re doing something. One day I’ll wake to some positive news but as yet nothing to see here

 

[Als2own]

Out at lunch today for mother in-laws 97th birthday and just seen the volume on CVN. What is going on? 14m traded today.
Seems like something is in the mix. Might have to open the bottom draw this year after all. We shall see

 

[Ferret]

I had a look at the Santos Investor Day materials released today.

They announced "an updated capital allocation framework that will target returns to shareholders of at least 60 per cent of all-in free cash flow from 2026, following a period of major capital investment to bring significant new production online from the Barossa and Pikka projects."

It sounds like Santos is continuing to pull back from investment in new projects. I couldn't see a single mention of Dorado.

It's hard to see how CVN moves forward with Dorado continually stalled.

 

[Als2own]

I had a look at the Santos Investor Day materials released today.

They announced "an updated capital allocation framework that will target returns to shareholders of at least 60 per cent of all-in free cash flow from 2026, following a period of major capital investment to bring significant new production online from the Barossa and Pikka projects."

It sounds like Santos is continuing to pull back from investment in new projects. I couldn't see a single mention of Dorado.

It's hard to see how CVN moves forward with Dorado continually stalled.

Totally agree. Has been stalled for many years yet volume last 2 days has increased. Another 10m+ today. Something is going on in the background we haven’t heard of yet and may not for a while.

 

[Ferret]

One of my picks for the 2025 competition.

Something has to happen for CVN in 2025. An announcement should be made about FID for Dorado, which would kick the share price along if positive. If not, then bye bye CVN.

 

[UMike]

Yea..... It has been dormant for quite a while. Probably better off merging in into STO.

One of my picks for the 2025 competition.

Something has to happen for CVN in 2025. An announcement should be made about FID for Dorado, which would kick the share price along if positive. If not, then bye bye CVN.

 

[Ferret]

More disappointment from CVN.

I thought Santos would get moving with Dorado this year, as it moves towards completion of other growth projects.

I don't know why they are so disinterested in progressing Dorado, but it is causing great harm to CVN. Maybe that is the plan?

 

[dyna]

Only for the brave . CVN 's S.P. down 23 % to close at 12 cents on huge 30 mill volume .
See the Captain's chart on his log today , post # 1998 .

8 0 % Joint venture partner at Dorado off W. A . , Santos dipped just 2 % .

Back to the drill .

 

[Ferret]

I fear CVN is going to be a stone around my neck for the 2025 comp.

With Dorado on ice, I don't see anything to kick the price up. It might even drift lower during the year.
@mullokintyre

 

[UMike]

COMPLETELY uninteresting company this one.

A lot can happen in a year but I wish I tipped a more interesting one to comment on each month.

 

[UMike]

It is like they have given up. Directionless

Carnarvon Energy Limited (Carnarvon or the Company) is pleased to announce the commencement of a process to enable the Company to return capital to shareholders (Capital Return).
Considering the announced delays in the development of the Dorado liquids project (Dorado), and in the absence of alternative value-accretive opportunities being identified to date, the Board has determined that the business may hold cash that is surplus to its to current requirements and is accordingly proposing to potentially return up to $0.07 per share (A$125 million) to shareholders.
The Capital Return is subject to:
• Carnarvon shareholder approval;
• Confirmation of the Australian income tax treatment of the distribution by an Australian Taxation Office (ATO) class ruling process;
• The receipt of any ASX waivers sought; and
• No better alternative use of the capital being identified by the Board.
Following the Capital Return, the Company intends to retain at least A$62 million cash, which is expected to be sufficient to fund the drilling of up to three wells in the Bedout Sub-basin, planned to occur over the next 4 years, as well as take the Dorado Project to a Final Investment Decision. Any future Dorado development costs may be funded by a combination of the existing US$90m capital cost carry1 and new debt. The Company will be seeking a Class Ruling from the ATO to confirm that the Capital Return will not be treated as a dividend for Australian taxation purposes. A Class Ruling is expected within six months. A more detailed explanation of the Capital Return proposal and confirmation of the timetable will be included in a Notice of Meeting to be released at a later date.

 

[Ferret]

So it will probably drop to < 5c after a capital return. What a great pick for the 2025 comp!