GNE - Genesis Energy

[iceman]

Does anyone know what the payment date is for these shares in the IPO ? Can't seem to find that info

[Harvey Specter]

Does anyone know what the payment date is for these shares in the IPO ? Can't seem to find that info

have you looked in the prospectus. Normally timetable is in he first 20 pages

[Xerof]

Page 4

general 11 April
firm brokers 14 April

[iceman]

have you looked in the prospectus. Normally timetable is in he first 20 pages

Sadly no postal deliveries to Drake Passage (Cape Horn) and internet too slow to download large files

Thanks Xerof for the info.

[silu]

Chalkie's column about Genesis
http://www.stuff.co.nz/business/opin...de-right-music

[Te Whetu]

I'm not sure if I'll buy in. I've done a back-of-the-envelope valuation which sets a price of $1.43 pre-bonus shares.

Estimate of normalised EBITDAF (excluding Kupe): $230 million
Estimated EBITDAF multiple for electricity assets: 8.2x

Weighted share of 2P reserves at Kupe: ~62 mmboe x 31% = 19.2 mmboe
Estimated 2P reserves multiple for Kupe: $28 per boe

Enterprise value: $2,424 million
Net debt: $994 million
Equity value: $1,430 million

Number of shares: 1,000 million
My rough estimate of share value: $1.43 per share.

Factoring the 1:15 bonus share: ($1.43 x 16 less c.14 cents of dividends not received on bonus share) / 15 = $1.51

Offer share price which gives nil NPV: $1.51 per share

Notwithstanding the above, I suspect Genesis could priced based on electricity multiples being applied to all its earnings (i.e. without taking into account that Kupe contributed one third of EBITDAF in FY13).

Anyone have any thoughts on the above analysis, and in particular on my assumptions three key assumptions (EBITDAF, EBITDAF multiple, 2P reserves multiple)?

Disclaimer: The above analysis is rough and for the purposes of discussion on these forums only. Please do not rely upon it make an investment decision.

[stones]

Sounds convincing and the proof will be as they say in the pudding. I will however be taking up a small holding as I feel this share offer has some appeal after reading the prospectus.

[TideMan]

Is there any advantage of buying these shares through a broker over applying for them directly online?

[Joshuatree]

Not costwise, easier with a broker if you have one (and a FIN number) and he will appreciate it as they get a fee from Genesis ;so may be biased re advice.

[bung5]

Chalkie's column about Genesis
http://www.stuff.co.nz/business/opin...de-right-music

Something very wrong about Chalkie's maths..

"BUT wait, there's more. Genesis investors who hold for a year get one bonus share for every 15 they bought, up to a maximum of 2000.
So an investor buying up to 30,000 shares, or $40,500 to $49,500 worth, gets a 6.7 per cent bonus in April next year.
The bonus for Mighty River shareholders was one share for every 25 held for two years, up to a maximum of 200. That's a 4 per cent bonus after a longer holding period for shareholders buying up to $12,500 worth at the $2.50 offer price"


2000 shares.... yet he uses 30,000 shares in the calc ???????!