long term – Medielys http://medielys.com/ Sun, 20 Mar 2022 16:12:59 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://medielys.com/wp-content/uploads/2021/08/favicon-2-150x150.png long term – Medielys http://medielys.com/ 32 32 Consolidation pushes nonprofit NFCs out of space as lending market heats up https://medielys.com/2022/03/20/consolidation-pushes-nonprofit-nfcs-out-of-space-as-lending-market-heats-up/ Sun, 20 Mar 2022 16:12:59 +0000 https://medielys.com/2022/03/20/consolidation-pushes-nonprofit-nfcs-out-of-space-as-lending-market-heats-up/ Banking and finance company executives have seen Skilled Nursing (SNF) facilities not only change hands more and more over the past year, but also move from tax-exempt and purpose-built status. non-profit to a for-profit institution. This is according to comments collected during a survey of leaders published by specialist investment bank Ziegler and the National […]]]>

Banking and finance company executives have seen Skilled Nursing (SNF) facilities not only change hands more and more over the past year, but also move from tax-exempt and purpose-built status. non-profit to a for-profit institution.

This is according to comments collected during a survey of leaders published by specialist investment bank Ziegler and the National Investment Center for Seniors Housing & Care (NIC).

Don Husi, managing director of the housing and aged care finance team at Ziegler, said the shift from non-profit to for-profit NFCs via transactions is a trend that has been brewing for five years. years, but like many industry trends has been accelerated by the pandemic.

“The driver of this is the inability to find workers, as opposed to just declines in occupancy. It’s so hard to find workers and agency costs have really skyrocketed – it’s hurting a lot of nonprofit providers, he added.

What Husi calls “sponsorship transitions” have also been happening for some time, when one nonprofit organization sells to another nonprofit entity, consolidating that part of the industry to begin with.

The survey also found nursing homes were in the middle of the pack in terms of active loans between the fourth financial quarters of 2020 and 2021, behind assisted living/memory care and independent living.

Continuing Care Retirement Communities (CCRCs) and active adult apartment living sectors saw less lending activity than SNFs.

All sectors saw a decline in lending between the fourth quarter of 2020 and the fourth quarter of 2021, according to the survey.

Still, long-term care lending has “significantly picked up” in the second half of 2021, executives said, as more banks feel comfortable enough to return to the market. Marlet.

One respondent, who submitted anonymous feedback with their survey responses, noted a $100 million difference in closed deals between 2021 and 2020 as the lending environment became more competitive.

Participants were able to leave anonymous comments as part of the survey.

“Our activity in 2021 doubled from 2020 as market acceptance and awareness of the impact of COVID stabilized,” another respondent said.

In terms of challenges in the lending environment, executives named inflation – as it relates to new construction – labor shortages and rising interest rates across the long-term care continuum. duration, among the current concerns.

A closer look at operating margins is also likely in the future, according to the comments, as occupancy continues to stabilize.

“We will not know how these labor markets and [personal protective equipment, or PPE] costs and everything else is going to impact stabilized margins for a while, until we see some of the data,” Husi said. “The different accounting rules, how and when they counted PEP funds or healthcare provider funds… not everyone did it the same way.”

It appears lenders are also looking at debt differently, with different methods of underwriting expenses and income related to COVID-19, the researchers said.

Lenders exclude all Covid-related income and expenses, excluding income but including expenses, or including all pandemic-related income and expenses.

“Covid-specific expenses are increasingly difficult to separate – things like PPE can be standardized, but side effects such as increased labor, supply and food costs are considered as potentially permanent and must be subscribed,” said one respondent.

It is difficult for lenders to determine what will be stabilized expenses in the future, said another participant, when underwriting loans. “Little weight” is given to these expenses, said one respondent, with more attention given to how a facility operates with less Covid pressure compared to pre-Covid.

“One of the things I found interesting was just the very different ways people underwrite Covid income and expenses and how that equates to assessments; it seems to be all over the place,” Husi said.

Ziegler partnered with NIC to conduct an industry-wide study assessing the lending climate for providers across the long-term care continuum.

Respondents included major banks and financial firms that lend to long-term care communities, including Skilled Nursing (SNF) facilities. Of the 131 lenders to respond, the majority of participants being regional banks and finance companies.

The survey includes results for the second half of 2021 versus the fourth financial quarter of 2020; the most recent data was collected between January 13 and 28 of this year.

Although most respondents are regional, more than half said they cover the national landscape. About 44% reported lending to the private and tax-exempt sectors, 44% only lent to private sector owners and operators, while 12% only loaned to the tax-exempt sectors.

For skilled nursing facilities (SNF), loan-to-value (LTV) percentages were highest among independent living, assisted living/memory care and new construction at 76% to 80%, depending on the ‘investigation.

The LTV is the maximum amount a bank is willing to finance based on the appraised value and cost of a new construction project.

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Cannabis Consolidation Roundtable | Crain’s company in Chicago https://medielys.com/2022/03/07/cannabis-consolidation-roundtable-crains-company-in-chicago/ Mon, 07 Mar 2022 06:00:00 +0000 https://medielys.com/2022/03/07/cannabis-consolidation-roundtable-crains-company-in-chicago/ How do you see the relative lack of liquidity and capital resources in this space affecting cannabis mergers and acquisitions in the coming year? Slaughter: Lack of access to capital resources will present opportunities for mergers and acquisitions in this capital-intensive industry. Until the SAFE Banking Act or similar legislation is passed, cannabis companies will […]]]>

How do you see the relative lack of liquidity and capital resources in this space affecting cannabis mergers and acquisitions in the coming year?

Slaughter: Lack of access to capital resources will present opportunities for mergers and acquisitions in this capital-intensive industry. Until the SAFE Banking Act or similar legislation is passed, cannabis companies will continue to rely on alternative financing (with rates of up to 15%) to finance the construction of their operations and /or their expansion. While lenders are increasingly comfortable with the financial viability of large cannabis companies, which translates into better terms, smaller companies are still struggling to secure financing.

Zeoli: There is definitely a lack of readily available funding in this industry. Some of the smaller players may have a harder time finding profitable capital to support expansion, perhaps leading them to look for an exit altogether. That said, I believe there are a decent amount of cost-effective private funding alternatives available to big players. Over the next year, I expect to see a significant influx of additional private capital flowing into the cannabis markets, whether through direct investments or lending vehicles.

Are there specific lending considerations for cannabis mergers and acquisitions? Is it relatively difficult for buyers to obtain a loan for financing an M&A?

Doran: Access to traditional banks and traditional bank capital is a major issue facing the cannabis industry. This is symptomatic of a larger problem: the sector does not have consistent or meaningful access to financial products and the plumbing of the traditional financial system in general. Cannibis industry regulations make it difficult to provide executives with traditional cannabis loan collateral sources and structures. Many traditional lenders do not yet offer loans or banking services to the cannabis industry. There is a growing pool of non-traditional private lending sources, but access to debt capital remains expensive and access is generally skewed in favor of larger players. This disparity in access to debt capital will tend to fuel consolidation.

ZeoliFirst, given the highly regulated nature of the target entity, the overall cost and level of due diligence involved is significantly increased as the lender will need to be assured of regulatory compliance by both the borrower and the target entity. Second, the lender must consider what the collateral for the loan will be and how to properly secure its collateral interests. A target company’s most valuable assets will be its license, inventory, and cash. Each of these assets is highly regulated in one way or another, and it can be complex to properly secure the lender’s interest in such collateral. Given the relative lack of current sources of financing in this market, lenders are very selective about the transactions they finance. This makes it difficult for some borrowers, especially smaller players, to obtain acquisition financing.

Interstate commerce could potentially generate economies of scale in some areas. But the timing – or even the reality – of that remains unclear. Do you think long-term possibility has a short-term influence on buyers’ M&A strategies?

Slaughter: Most market participants are not expecting legislation that will enable interstate commerce anytime soon and are preparing for a relatively static regulatory environment. As a result, I expect companies to continue to look to mergers and acquisitions as a primary means of increasing market share, entering new markets, and growing ahead of federal legalization and prosecution. consolidation that is expected to occur as traditional industries enter the market.

Doran: Even with rapid federal legislative breakthrough, the era of true interstate cannabis trade is likely still a long way off. For example, just look at how long the liquor industry remained regionally Balkanized after the repeal of Prohibition. That said, long-term investments are planned, particularly around cultivation and logistics, for the eventual opening of the cannabis trade across state lines.

Rules around cannabis delivery vary by state – it’s not allowed in Illinois, for example, but it’s well established in California. How do buyers view delivery-focused assets as part of their M&A and growth strategy?

Zeoli: Some states are behind in allowing the delivery of cannabis, but I believe that eventually all states that allow the sale of cannabis will also allow its delivery. As an example, there are at least three Illinois bills currently pending focused on cannabis delivery. Interestingly, the existence of COVID-19 has accelerated legislative action to allow delivery in many states. Many states have moved to open delivery as in-person sales have been dampened by the pandemic.

Doran: I agree that delivery will likely expand to be present in many, if not most, legal markets in the medium term. Not everyone will focus on investment and M&A activity in delivery assets, licensing and logistics technology, but a select subset of cannabis industry investors will continue to explore and exploit opportunities to establish themselves in what will eventually become a vital part of the industry.

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TV Somanathan on the trade-off between spending and fiscal consolidation https://medielys.com/2022/02/04/tv-somanathan-on-the-trade-off-between-spending-and-fiscal-consolidation/ Fri, 04 Feb 2022 05:18:56 +0000 https://medielys.com/2022/02/04/tv-somanathan-on-the-trade-off-between-spending-and-fiscal-consolidation/ In FY23, the government had planned to borrow a lower proportion of its deficit from the National Small Savings Fund compared to last year. In FY22, the government borrowed Rs 5.91 lakh crore from small savings and in the new financial year, it intends to borrow Rs 4.25 lakh crore. This, too, drove up borrowing […]]]>

In FY23, the government had planned to borrow a lower proportion of its deficit from the National Small Savings Fund compared to last year. In FY22, the government borrowed Rs 5.91 lakh crore from small savings and in the new financial year, it intends to borrow Rs 4.25 lakh crore.

This, too, drove up borrowing in the market.

Could the government have chosen to control borrowing by borrowing more from small savings or by using high cash balances with the central bank? “Let’s see if we end up having significant cash balances at the end of the year,” Somanathan said. The decline in borrowing from small savings, he said, was based on the expectation that inflows into such schemes could slow in the new financial year.

“In the current year, because we have had huge inflows of small savings, the proportion of borrowings in the market is lower, he said. “Next year we’ve taken a small growth in savings at 10% over the previous year’s budget, not at the level we’ve actually seen this year.”

According to Somanathan, inflows into small savings tend to be very sensitive to interest rates. Last year, low bank deposit rates may have prompted a shift towards small savings. “If the interest rate environment changes, we may not see these kinds of small savings inflows.”

While choosing to increase its total expenditure by 4.6%, the government has sharply increased its capital expenditure from Rs 5.5 lakh crore last year (excluding adjustment for Air India dues) to Rs 7.5 lakh crore this year. As part of its capital expenditure, the government has earmarked a long-term loan of Rs 1 lakh crore to the states for capital expenditure.

Somanathan said the decision to cancel this state capital expenditure loan was based on feedback from state finance ministers who found a similar provision made last year.

“The reason is that the basic assumption or objective of this budget is to kick-start jobs and growth through infrastructure investment. Basically, the objective is to try to create good-paying jobs rather than palliative jobs or relief expenses,” Somanathan said. “To do this, we need to ensure that this expenditure is actually spent on the ground and we need it to be widely disbursed geographically and sectorally.”

According to Somanathan, the ability of central enterprises and central ministries to absorb a huge increase in capital spending is limited. In addition, core projects are confined to certain geographical areas and are mainly located along railway lines, national highways, etc.

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QuinStreet: AmOne.com Reveals Three Common Debt Consolidation Mistakes Consumers Should Avoid https://medielys.com/2022/01/25/quinstreet-amone-com-reveals-three-common-debt-consolidation-mistakes-consumers-should-avoid/ Tue, 25 Jan 2022 10:57:12 +0000 https://medielys.com/2022/01/25/quinstreet-amone-com-reveals-three-common-debt-consolidation-mistakes-consumers-should-avoid/ Missteps can derail financial goals and set consumers back Foster City, California – January 25, 2022 – “New year, new me” is resonating on social media and many consumers have made resolutions to get their finances in shape. Debt consolidation can be a vital strategy to help consumers achieve their financial goals, but if they […]]]>

Missteps can derail financial goals and set consumers back

Foster City, California – January 25, 2022 – “New year, new me” is resonating on social media and many consumers have made resolutions to get their finances in shape. Debt consolidation can be a vital strategy to help consumers achieve their financial goals, but if they make certain mistakes, they can end up in worse financial shape. To help people avoid this, AmOne.coma leading personal loan site, publishes its new report Successful Debt Consolidation: Your Complete Guidedescribing the most common mistakes and how to avoid them.

“If you’re juggling multiple credit cards or loans, a debt consolidation plan can help you comfortably manage what you owe and strive to pay it back,” says Kristin Marino, personal finance expert at AmOne. “However, there are some mistakes you may not be aware of that can make your debt problems worse.

Three Common Debt Consolidation Mistakes

  1. Believing that the debt has disappeared when it has not disappeared: People can be so relieved to see zero balances on their credit cards and other debts that they forget they still owe their consolidated loan balance – the debt just turns into another type of debt.
  2. Failing to address the underlying issues that created the debt: If someone is prone to overspending, a debt consolidation plan may not be a long-term solution unless behavior changes, so consumers need to focus on sticking to a budget.
  3. Choose the wrong solution for the financial situation: There are several debt consolidation options available and it is important to carefully research which solution offers the best solution, balancing payment term, interest rate and other factors.

AmOne’s guide outlines why people enter into debt consolidation deals and popular products used by consumers – such as debt management plans, personal loans and credit card balance transfers – to manage their debts and achieve their financial goals.

“Whether you want to lower your payments, lock in a fixed interest rate, increase your credit score, or get out of debt faster, debt consolidation can be a useful tool for achieving those goals,” notes Marino. “Making an informed decision about the path you take to get there can be critical to your success.”

Marino is available to discuss the best debt consolidation strategies to get individual finances in order this year, common borrower mistakes, and how consumers can choose the best solution to settle their debts.

About AmOne
AmOne is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance market technologies and services to the financial services and home services industries. QuinStreet is a pioneer in providing online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. AmOne is a member of QuinStreet’s specialty research and publishing division.

Since 1999, AmOne helped consumers identify the loan or credit solutions that best meet their needs, using proprietary loan matching technology. The company also provides free credit assistance from financial matching specialists. Since its inception, AmOne’s credit assistance efforts have generated more than $4 billion in loan approvals for consumers and business owners nationwide.

Twitter: @AmOneMoney
Facebook: https://www.facebook.com/AmOneMoney/

Media contact
Amy Eury
Senior Manager, Public Relations
412-532-9352
aeury@quinstreet.com
LinkedIn

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Hannon Armstrong Sustainable Infrastructure Stock: Unsustainable premium to book value https://medielys.com/2022/01/12/hannon-armstrong-sustainable-infrastructure-stock-unsustainable-premium-to-book-value/ Wed, 12 Jan 2022 18:23:00 +0000 https://medielys.com/2022/01/12/hannon-armstrong-sustainable-infrastructure-stock-unsustainable-premium-to-book-value/ LeoPatrizi/E+ via Getty Images Hannon Armstrong (NYSE:HASI) is a mortgage REIT that provides financing for various types of green projects. They were one of the first to go into space and they are very good at it. I like the business and think there are many opportunities in green finance. Unfortunately, the valuation of HASI […]]]>

LeoPatrizi/E+ via Getty Images

Hannon Armstrong (NYSE:HASI) is a mortgage REIT that provides financing for various types of green projects. They were one of the first to go into space and they are very good at it. I like the business and think there are many opportunities in green finance. Unfortunately, the valuation of HASI is excessively high, so it is actually a dangerous investment.

The Sell thesis

The nature of the mREIT business is such that the market price must always be anchored approximately around book value. The market seems to have gotten caught up in the excitement of HASI’s environmental talk and has forgotten the basics of mREIT valuation. HASI is trading at 3.13 times its book value. In this article, I intend to show that even though their investments perform extremely well, there is no reasonable outcome in which they are worth HASI’s market capitalization.

It’s not about whether they are good investments. Even with extremely optimistic forecasts, they simply cannot be worth 3.13 times the book. It is a matter of the structure being such that their value is capped.

Book value and REITs

Book value is a tricky concept with REITs. For equity REITs, this is an almost meaningless metric because properties are depreciated to 0 on the balance sheet, making the book value in no way reflective of the true value of the asset. .

Mortgage REITs are different. Loans are usually carried at face value or some measure of fair value, with companies often reporting both. Face value and fair value are useful measures for mREITs and provide an excellent guide for valuation.

mREIT anchored near book value

There are different types of mREITs such as agency mREITs, CRE mREITs, and private equity style mREITs, but they all have one thing in common: a valuation peg at approximately book value.

In fact, mREITs used to be part of the financial industry until they were phased out along with equity REITs in the 11e GICS sector.

These non-bank lenders all tend to trade around book value as shown below

Company (symbol)

To preserve

AGNC Investment (AGNC)

0.90

Annaly Capital (NLY)

0.98

New Residential Investment Company (NRZ)

0.99

Two ports (TWO)

0.92

Chimera (CIM)

0.94

Blackstone Mortgage Trust (BXMT)

1.16

KKR Real Estate Financing (NYSE: KREF)

1.11

Capital Loan (RC)

1.12

Data from SNL Financial

The list above includes both large and small companies as well as those with excellent reputations and those that have made mistakes.

Why such uniformity of valuation despite great differences between companies?

Well, there is an underlying mechanism that anchors a lender’s value to book value and it’s quite simple.

Loans tend to recoup the capital invested plus interest. The interest is proportional to the risk level of the loan. So, by lending $1,000, you recover a risk of $1,000 plus interest which has a risk-adjusted present value of about $1,000. Loans can go horribly wrong so you get $0 back, but there is no mechanism by which a loan can be a home run.

If the loan goes perfectly, you only get back the capital plus interest.

Given this capped return, it would be pretty silly to pay $3,000 for the receivables stream of a $1,000 loan and yet that’s what happens with HASI.

Unrealistic HASI valuation

Here is the Vital Statistics form on which I am basing this argument

Graphical user interface, table Description automatically generated with medium confidence

Statistics

SNL Financial

Thus, the enterprise value shown above of $6.5 billion offsets the cash and cash equivalents of the $2.467 billion in liabilities plus $4.561 billion in market capitalization. This means that to justify the current valuation, the assets, including cash, must be worth just over $7 billion.

Now let’s take a look at the strengths of the business.

Background pattern Description automatically generated

Balance sheet

10-Q

Assets of $3.9 billion are quite a far cry from the $7 billion. Let’s dig into the major line items to see if any of them might be worth much more than they carry on the balance sheet.

  • $413 million of cash and cash equivalents is worth $413 million.

The other significant items are receivables and equity investments using the equity method.

To estimate the real value of these, we need to know how HASI accounts for them. Here is their description of the 10-Q

“Investments are debt securities that meet the criteria of ASC 320, Investments – Debt and equity securities. We have designated our debt securities as available for sale and carry these securities at fair value on our balance sheet.

HASI also provided the following table:

Background pattern Description automatically generated

HASI Investments

HASI

Source: 10-Q

If the loans perform perfectly, they would functionally recover that $39 million loss provision. Even still, that brings it to just over $1.4 billion.

We should also attribute some value to embedded interest payments. A HASI bull might argue that since many of these loans are functionally super senior within the debtor’s capital stack, the level of risk is very low compared to the 5%+ interest rates on these loans. .

As such, HASI got a better deal than the market and so there would be a positive risk-adjusted present value on the interest payments.

I think there is some validity to this argument, but there is also risk on the other side with long-term, fixed-rate interest payments in a rising rate environment.

The 10-year Treasury yield just hit 1.668% and is expected to rise with the Fed’s tapering and hikes coming later this year.

Overall I think HASI is getting a better than average deal on their loan book so one could spot the fair value a bit higher than the balance sheet but the difference would be in the tens of millions, not in the hundreds of millions.

As such, the loan portion of HASI fits the mREIT profile perfectly in that it must be firmly anchored to book value.

A little more leeway in investments using the equity method

Equity investments, as opposed to loan investments, may fluctuate somewhat more in value with the performance of the underlying asset. As such, if there is a bucket in which HASI’s book value underestimates the actual value, this would be it.

As of 9/30/21, HASI held $1.468 billion in investments under the equity method. Here is how HASI counts them:

“Our investments in renewable energy or energy efficiency projects are accounted for using the equity method. Under the equity method, the carrying value of these equity-accounted investments is determined based on the amounts we have invested, adjusted for equity in the profit or loss of the investee allocated based on the LLC agreement, less distributions received.

In short, they are recorded at cost with cash flow type adjustments. Thus, the delta between the real value and the book value of this item would be the change in the fair value of the instrument beyond the cash flows it generated.

So, let’s look at investments using the equity method.

Automatically generated table description

Investments under the equity method

HASI

The largest is Jupiter Equity Holdings, a company that owns nine operating wind farms producing about 2.3 gigawatts. HASI contributed $540 million to the project in July 2020.

It was a good time to build renewables because the performance metrics look solid. This deal is made more secure with power supply deals already under long-term contract, so I suspect it will cash in well. That said, there are two factors that I believe limit how much this could have appreciated beyond book value:

  1. July 2020 is not that far away.
  2. HASI has a preferred interest in the project rather than a common tranche. Thus, its cash flow is more secure, but the upside is also reduced.

Lighthouse Partnerships is a similar investment in that HASI holds a preferred tranche in a large solar and wind project. HASI’s total investment is expected to be $663 million, but as of 9/30/21, only $219 million has been invested.

This too looks like a lucrative investment, but it is still in its infancy. Given recency and prime tier, I suspect fair value is only slightly north of invested capital.

HASI does everything right and every investment it makes seems to be relevant. I particularly like how they structure their trades so that they are so high in the capital stack that their returns are near AA caliber.

Even their equity investments are structured with a preferential yield which greatly increases HASI’s chances of profitability in the companies.

It’s a conservative company with the expertise in green financing to get the right deals with the right partners. I strongly believe that they will consistently generate strong IRR at relatively low risk. If the company was trading at around book value, I’d be happy to stock up on stocks.

A simple case of overvaluation

The challenge with HASI’s current valuation at 3.13X Pound is that given the conservative nature of their investments, it is absurd to value them so highly. A conservative lender simply cannot triple their money in just a few years.

On each of the HASI investments that I have reviewed, I believe they got a good deal, making the present value of these investments perhaps 10% or even 20% greater than their invested capital.

As such, the $7 billion valuation is absurd. Given that the capital has been so well invested, I think the $3.2 billion invested by HASI as of 9/30/21 is probably worth around $3.6 billion. Adding the $413 million in cash and cash equivalents, I would see the asset value at $4.13 billion.

Don’t pay $7 billion for $4.13 billion

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Three sectors of the all-cap index are trading below economic book value after 3Q21 https://medielys.com/2021/12/17/three-sectors-of-the-all-cap-index-are-trading-below-economic-book-value-after-3q21/ Fri, 17 Dec 2021 08:00:00 +0000 https://medielys.com/2021/12/17/three-sectors-of-the-all-cap-index-are-trading-below-economic-book-value-after-3q21/ Hand pointing at stock chart. Getty This report is a free, abridged version of All Cap Index & Sectors: Price to Economic Book Value Through 3Q21, one of my quarterly series on fundamental market and sector trends. Key points: The back PEBV ratio for the NC 2000[1]my company’s all-cap index, fell from 1.7 in 3Q20 […]]]>

This report is a free, abridged version of All Cap Index & Sectors: Price to Economic Book Value Through 3Q21, one of my quarterly series on fundamental market and sector trends.

Key points:

  • The back PEBV ratio for the NC 2000[1]my company’s all-cap index, fell from 1.7 in 3Q20 to 1.5 in 3Q21, implying constituent earnings will rise 50% from long-term 3Q21 levels.
  • Investors are the most pessimistic about the outlook for the telecom services sector, where stocks are priced for a 50% drop in earnings from 3Q21 over the long term.
  • The full version of this report analyzes[2],[3] market capitalization, economic book value and price-to-economic book value (PEBV) ratio for NC 2000 and each of its sectors.

The NC 2000 trailing PEBV ratio fell in 3Q21

The trailing PEBV ratio for the NC 2000 fell from 1.7 in 3Q20 to 1.5 in 3Q21. This advanced PEBV ratio compares the expected future earnings of the NC 2000 (incorporated in its equity valuation) to the TTM earnings in 3Q21. At 1.5, the NC 2000 valuation implies NC 2000 stock earnings will rise 50% from 3Q21 levels.

Key details on certain CN 2000 sectors

Among the NC 2000 sectors, telecommunications services, consumer staples and financials are trading below their economic book value and basic materials are trading at their economic book value. The Telecommunications Services sector has the lowest PEBV ratio among the eleven sectors in the All Cap Index based on 11/16/21 prices and 3Q21 10-Qs financial data.

A PEBV ratio of 0.5 means investors expect 3Q21 telecom services sector earnings to decline by 50%. On the other hand, investors expect the real estate sector (PEBV ratio of 3.4) to improve its earnings more than any other sector in the All Cap index.

Below I highlight the health sector.

Example of sector analysis[4]: Health: Lagging PEBV ratio = 1.2

Figure 1 shows that the mobile PEBV ratio for the healthcare sector fell from 1.5 in 3Q20 to 1.2 in 3Q21. The market capitalization of the healthcare sector fell from $5.1 trillion in 3Q20 to $6 trillion in 3Q21, while its economic book value fell from $3.4 trillion in 3Q20 to $5 trillion in 3T21.

Figure 1: PEBV Ratio of Health Care Monitoring: December 1998 – 11/16/21

The November 16, 2021 measurement period uses price data as of that date and incorporates 3Q21 10-Q financial data, as this is the earliest date for which all 3Q21 10-Qs for NC 2000 constituents were available.

Figure 2 compares market capitalization and economic book value trends for the healthcare sector since 1998. I summarize the individual NC 2000/sector values ​​for market capitalization and economic book value. I call this approach the “global” methodology, and it matches the S&P Global (SPGI) methodology for these calculations.

Figure 2: Healthcare Market Capitalization and Economic Book Value: December 1998 – 11/16/21

The November 16, 2021 measurement period uses price data as of that date and incorporates 3Q21 10-Q financial data, as this is the earliest date for which all 3Q21 10-Qs for NC 2000 constituents were available.

The Aggregate methodology provides a simple view of the entire NC 2000/sector, regardless of company size or index weighting, and is the way S&P Global (SPGI) calculates metrics for the S&P500.

For additional perspective, I compare the aggregate method for the trailing PEBV ratio with two other market-weighted methodologies. These market-weighted methodologies add more value to ratios that don’t include market values, eg ROIC and its drivers, but I’m including them here for comparison purposes nonetheless. Each method has its advantages and disadvantages, which are detailed in the appendix.

Figure 3 compares these three methods of calculating rolling PEBV ratios for the Healthcare sector.

Figure 3: PEBV end-of-care ratio methodologies compared: December 1998 – 11/16/21

The November 16, 2021 measurement period uses price data as of that date and incorporates 3Q21 10-Q financial data, as this is the earliest date for which all 3Q21 10-Qs for NC 2000 constituents were available.

Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation for writing about a specific stock, style, or theme.

Appendix: Trailing PEBV Ratio Analysis with Different Weighting Methodologies

I derive the above metrics by adding the individual constituent NC 2000/sector values ​​for market capitalization and economic book value to calculate the trailing PEBV ratio. I call this approach the “Aggregate” methodology.

The Aggregate methodology provides a simple view of the entire NC 2000/sector, regardless of company size or index weighting, and is the way S&P Global (SPGI) calculates metrics for the S&P500.

For additional perspective, I compare the aggregate method for the trailing PEBV ratio with two other market-weighted methodologies. These market-weighted methodologies add more value for ratios that don’t include market values, e.g. ROIC and its drivers, but I’m including them here nonetheless, for comparison:

Market-weighted measures – calculated by weighting according to market capitalization the PEBV ratio of individual companies in relation to their sector or the overall NC 2000 at each period. Details:

  1. The weight of the company is equal to the market capitalization of the company divided by the market capitalization of the NC 2000 or its sector
  2. I multiply the PEBV ratio of each company by its weight
  3. The rolling PEBV ratio NC 2000/Sector is equal to the sum of the rolling PEBV ratios weighted for all the companies of the NC 2000/sector

Market-weighted drivers – calculated by weighting the market capitalization and the economic book value of individual companies in each sector at each period. Details:

  1. The weight of the company is equal to the market capitalization of the company divided by the market capitalization of the NC 2000 or its sector
  2. I multiply the market capitalization and the economic book value of each company by its weight
  3. I sum the weighted market capitalization and the weighted economic book value of each company in the NC 2000/each sector to determine the weighted market capitalization of the NC 2000 or the sector and the weighted economic book value
  4. The NC 2000/sector rolling PEBV ratio is equal to the NC 2000/sector weighted market capitalization divided by the NC 2000/sector weighted economic book value

Each methodology has its pros and cons as listed below:

Aggregate method

Benefits:

  • A direct look at the entire NC 2000/sector, whatever the size or weight of the company.
  • Corresponds to how S&P Global calculates metrics for the S&P 500.

The inconvenients:

  • Vulnerable to the impact of companies entering/leaving the corporate group, which could unduly affect overall values. Also sensitive to outliers over a period of time.

Market-weighted measures method

Benefits:

  • Takes into account a company’s market capitalization relative to the NC 2000 sector and weights its measures accordingly.

The inconvenients:

  • Vulnerable to outlying results from a single company have a disproportionate impact on the overall PEBV ratio, as I will show below.

Market-weighted factor method

Benefits:

  • Considers a company’s market capitalization relative to the NC 2000 sector and weights its size and economic book value accordingly.
  • Mitigates the disproportionate impact of a company’s outlying results on overall results.

The inconvenients:

  • More sensitive to large swings in market capitalization or economic book value (which can be affected by changes in WACC) from period to period, especially from companies with a large weighting in the NC 2000 /Sector.

[1] The NC 2000 consists of the 2000 largest US companies by market capitalization in my company coverage. The components are updated on a quarterly basis (March 31, June 30, September 30 and December 31). I exclude companies reporting under IFRS and non-US ADR companies.

[2] I calculate these metrics based on S&P Global(SPGI), which sums the individual NC 2000 constituent values ​​for market capitalization and economic book value before using them to calculate the measures. This is what I call the “aggregate” methodology.

[3] My company’s research is based on the latest audited financial data, which is 3Q21 10-Q in most cases. Price data is as of 11/16/21.

[4] The full version of this report provides analysis for each sector like what I show for this sector.

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What is book value? Definition, how to calculate and FAQ https://medielys.com/2021/11/30/what-is-book-value-definition-how-to-calculate-and-faq/ Tue, 30 Nov 2021 14:29:12 +0000 https://medielys.com/2021/11/30/what-is-book-value-definition-how-to-calculate-and-faq/ [ad_1] Investors looking for a basic valuation of a business can look to its assets and liabilities. Another term for book value is shareholders’ equity. Dominic Diongson; Cloth Contents What is book value? How do you calculate the book value? Why is book value important? Book value vs market value vs intrinsic value, according to […]]]>


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What is book value?

Book value is an accounting measure of a company’s equity. It is a measure used to calculate the valuation of a business based on its assets and liabilities.

If owners or managers were looking to sell their business quickly and had to sort out the valuation, one method would be book value. By going through their balance sheet, they would subtract liabilities from assets, providing an amount of net assets. Another term for book value is shareholders’ equity, which is an item that can be found on the balance sheets of quarterly and annual filings of publicly traded companies with the Securities and Exchange Commission. It is usually found in the assets, liabilities and equity section of the balance sheet.

Net income can play a major role in the book value of a business, and owners or managers generally want their business valuation to increase: the higher the profits, the higher the book value; conversely, a drop in profits can lead to a drop in book value. It’s easier to increase or decrease profits on a quarterly basis because other assets and liabilities tend to fluctuate less than net income.

How do you calculate the book value?

Book value = Assets – Liabilities

2

Book value can be calculated in a simplified way by subtracting a company’s liabilities from its assets. In many cases, however, other items are included in this calculation, and it is not as simple as subtracting the “Total liabilities” item from the “Total assets” item.

In the financial statements of The Coca-Cola Company, for example, equity would be listed as “total equity,” which subtracted all types of liabilities, including long-term debt, from “total equity”. active ”. Amazon lists its equity simply as “total equity”.

Why is book value important?

For startups, book value is a basic metric to measure the valuation of their business. They do not have stocks that are freely traded and, therefore, are priced in the public market. There are other valuation methods for start-ups, of course, but book value provides tangible assets such as equipment, property, and inventory.

A publicly traded company, on the other hand, will have a published market price, giving investors the ability to compare the market value of the company to its book value. Book value tends to be less than market value because shareholders generally place a premium on the price. However, if the book value is greater than the market value then the company would be considered undervalued but, despite this, it is rare to see the book value equal to or less than the market value. However, unusual events such as stock market crashes can cause the market value to drop sharply. At the start of the 2020 pandemic, panic selling caused the stock prices of many companies to plummet, and in late March and early April the market value of some fell below their book value.

It is difficult to predict the assets or liabilities of a business or to gather this information in real time. Investors therefore use the most recent data and combine it with the latest stock price to calculate the price-to-book ratio.

TheStreet Dictionary Terms

Below is a table of the book values ​​of companies at the end of the third quarter of 2021 compared to their market capitalization at the end of November, in billions of dollars.

Form 10-Q Deposits

Society Book value Market valuation

You’re here

27

1140

Amazon

93

1,810

Apple

63

2,630

Coca Cola

24

235

Berkshire Hathaway

481

632

Book value vs market value vs intrinsic value, according to Warren Buffett

In recent decades, famed investor Warren Buffett has placed less emphasis on book value, claiming in Berkshire Hathaway’s annual reports that it is a weak indicator for gauging a company’s value. Instead, he prefers to look at market value and go deeper, intrinsic value, which in layman’s terms, he says, is the present value of money that can be taken out of a business during its life. remaining life.

He used a college degree as an example where the book value was roughly the cost of education, while the intrinsic value was roughly the difference between the graduate’s income over his lifetime and what the graduate would have. been his income during his life without a degree. Buffett focuses on the future (intrinsic) value of a business for its profit potential rather than its historical (book) value. In fact, he goes on to say that book value does not make sense as an indicator of intrinsic value.

Frequently Asked Questions (FAQ)

Here are answers to some of the most frequently asked questions investors have about book value.

Are book value and market value the same?

Market value is calculated by multiplying the number of outstanding shares of a company by the price of its shares, while book value is the difference between its assets and liabilities.

What is book value per share?

Book value per share is calculated by taking equity and dividing it by the number of shares outstanding, which gives book value per share.

What is the price-to-book ratio?

This ratio measures how the market valuation of a company compares to its book value. A high ratio may indicate overvaluation, while a low ratio suggests it is at fair value or undervalued.

How is book value used in calculating return on equity?

Return on equity is calculated by dividing net income by book value.

Can the book value be negative?

Book value can be negative if a company’s liabilities exceed its assets. In many cases, a negative book value could mean that a business is bankrupt.

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How often should you check your brokerage account balance? https://medielys.com/2021/11/16/how-often-should-you-check-your-brokerage-account-balance/ Tue, 16 Nov 2021 11:32:43 +0000 https://medielys.com/2021/11/16/how-often-should-you-check-your-brokerage-account-balance/ [ad_1] Image source: Getty Images Online brokerage accounts made it super easy to log in and check your account balance in seconds. But while it’s tempting to check your investments daily – or even more often – doing so isn’t necessarily the best idea. In fact, it’s a good idea to be strategic about how […]]]>


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Image source: Getty Images

Online brokerage accounts made it super easy to log in and check your account balance in seconds. But while it’s tempting to check your investments daily – or even more often – doing so isn’t necessarily the best idea.

In fact, it’s a good idea to be strategic about how often you log into your broker’s account to see how your investments are doing.

Signing in too often – or not often enough – to your brokerage account could cost you money

So how often should you check your account performance? For most investors, it is ideal to do this about once every few months.

Registering in your brokerage account once every few months allows you to:

  • Make sure your portfolio is balanced – often some of your investments outperform others and your portfolio may end up focusing too heavily on those investments. This may put you at more risk than you should be exposed to. You’ll want to check your account balances every few months or so to determine if your portfolio needs to be rebalanced to be better diversified.
  • Confirm that you are exposed to the right level of risk: you need a mixture of high risk investments which have the potential to produce better returns and less risky and safer investments. The level of risk you can take will change. As you get closer to when you have to rely on investments to generate income, you become less able to wait for downturns. It is therefore important to check your portfolio about once a year to make sure it matches your current risk tolerance.
  • Reaffirm your commitment to your investments: You want to invest for the long term in order to maximize your chances of building up your assets. But that doesn’t mean you should never sell assets. Checking every few months or so allows you to confirm that you are still confident that the companies you invest in have strong potential for the future.

However, you usually don’t want to check your account balance every day or even every few weeks. This creates an unnecessary risk that you overreact to fluctuations in the price of your investments which may occur as a natural part of market fluctuations.

Selling assets due to short term market trends almost guarantees that you will end up with a losing investment strategy. This is because you will almost always end up reacting after your stocks start to fall and you could sell and lock in losses as a result. Or you could be missing out on potential earnings by selling at the first sign of profit when there is a chance to make a lot more money.

Now, if you know that you can be disciplined enough to avoid making decisions based on short-term price movements and find it fun to check your portfolio, then it’s not necessarily the worst thing in the world to check. more often.

But watch for signs that you are becoming too obsessed with daily performance tracking; are tempted to react to daily movements; or confuse losses and gains on paper with permanent changes in your wealth. If these things start to happen, take a step back and avoid logging into your brokerage account as often as you have.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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IGI raises premiums and book value – The Royal Gazette https://medielys.com/2021/08/16/igi-raises-premiums-and-book-value-the-royal-gazette/ Mon, 16 Aug 2021 07:00:00 +0000 https://medielys.com/2021/08/16/igi-raises-premiums-and-book-value-the-royal-gazette/ Updated: August 16, 2021 07:42 Bermuda-based International General Insurance Holdings Ltd, the specialty commercial reinsurer, reported net profit of $5.6 million for the second quarter, compared to net profit of $12 million for the same quarter a year ago . For the first six months of 2021, net income was $20.1 million, compared to net […]]]>

Updated: August 16, 2021 07:42

Bermuda-based International General Insurance Holdings Ltd, the specialty commercial reinsurer, reported net profit of $5.6 million for the second quarter, compared to net profit of $12 million for the same quarter a year ago .

For the first six months of 2021, net income was $20.1 million, compared to net income of $11.2 million for the first six months of 2020.

Base operating income was $9 million and $10.3 million for the quarters ended June 30, 2021 and June 30, 2020, respectively.

Core operating income was $23.8 million for the first six months of 2021, compared to $23.7 million for the comparable period of 2020.

Gross premiums written amounted to $166.1 million for the quarter ended June 30, which represents a growth of 21% compared to $137.3 million for the same quarter last year.

For the first six months of 2021, gross premiums written amounted to $266.8 million, an increase of 12.8% compared to $236.5 million for the comparable period of 2020.

The combined ratio for the second quarter was 92.3%, compared to 84% for the same quarter in 2020. The quarter-over-quarter increase was mainly due to the higher incurred claims ratio for current accident year by 55.8% in the quarter. ended on June 30, compared to 49.8% in 2020, the company said.

The combined ratio for the six months ended June 30 was 88.5%, compared to 82.6% for the same period a year ago, which benefited mainly from the weakening of the British pound against the US dollar .

Total investment income was $4.5 million for the second quarter, compared to $4.7 million in the second quarter of 2020. For the first six months of 2021, total investment income was is set at $9.7 million, compared to $2.6 million in 2020.

The company’s board of directors declared a common stock dividend of 16 cents per share.

Wasef Jabsheh, Chairman and CEO of IGI, said, “Our results for the second quarter and first half of 2021 further confirm the successes IGI has achieved over the past 20 years. Premium growth in the second quarter was strong at 21%, following more moderate production in the first quarter, with strong profitability for the first half of 2021 reflected in our combined ratio of 88.5%.

“With market conditions holding up well and rate increases across our portfolio to nearly 13%, we remain focused on maximizing opportunities.

“As well as seeing some exciting business in the new emergency line written by our UK branch in London, we recently announced that our branch in Malta has received approval from local regulators to begin writing business.

“Overall, Europe represents a good growth opportunity for IGI and we expect our results in the months and years to come to reflect this. Our Maltese subsidiary is already generating significant interest and activity and we have an experienced team in place to capitalize on opportunities across Europe.

“We increased our book value per share by 1.9% year-to-date in 2021, and 17% since going public in March 2020.

“I am very pleased with our progress, particularly in what has been an extraordinary and turbulent time for all of us, and we look forward to continuing our record of creating value for our shareholders over the long term.”

IGI said IGI Group financial strength ratings have been assigned to the company’s new European subsidiary in Malta.

S&P Global Ratings has assigned an “A- financial strength rating to IGI Europe, while AM ​​Best has assigned an “A” (Excellent) financial strength rating. Both ratings have a stable outlook.

The company said S&P and AM Best cited IGI Europe’s strategic relationship with IGI and its support as key factors in its decisions, along with IGI’s balance sheet strength and track record of strong operating performance.

IGI is an international commercial risk insurer and reinsurer that underwrites a diversified portfolio of specialty lines.

The company is registered in Bermuda and operates in Bermuda, London, Malta, Dubai, Amman, Labuan and Casablanca.

IGIH Chief Executive Officer Wasef Jabsheh (file photo)

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Razor Energy Corp. Announces Completion of Strategic Acquisition of Light Oil Consolidation at Swan Hills and Adoption by FutEra Power Corp. a stock option plan https://medielys.com/2021/08/12/razor-energy-corp-announces-completion-of-strategic-acquisition-of-light-oil-consolidation-at-swan-hills-and-adoption-by-futera-power-corp-a-stock-option-plan/ Thu, 12 Aug 2021 07:00:00 +0000 https://medielys.com/2021/08/12/razor-energy-corp-announces-completion-of-strategic-acquisition-of-light-oil-consolidation-at-swan-hills-and-adoption-by-futera-power-corp-a-stock-option-plan/ [ad_1] CALGARY, Alberta, August 12, 2021 (GLOBE NEWSWIRE) – Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) is pleased to announce that it has completed the acquisition of certain of the assets of interest in its central area of ​​Swan Hills, Alberta (the “Assets ) For a total purchase price of $ 5 million […]]]>


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CALGARY, Alberta, August 12, 2021 (GLOBE NEWSWIRE) – Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) is pleased to announce that it has completed the acquisition of certain of the assets of interest in its central area of ​​Swan Hills, Alberta (the “Assets ) For a total purchase price of $ 5 million in cash, subject to certain closing adjustments (the “Acquisition”) as previously announced in its August 4, 2021 press release.

The acquisition was financed by Arena Investors, LP (“Arena”) through an amended term loan agreement. Arena is an institutional asset manager with $ 2.2 billion in committed assets under management that specializes in providing innovative capital solutions for mid-market companies.

The acquisition enables Razor to profitably add industry-leading, long-term light oil reserves with a base ten percent annual decline, at low risk (41o API), production and cash flow supported by improving commodity price environment as crude oil supply and demand returns to equilibrium.

Meanwhile, FutEra Power Corp. (“FutEra”), a subsidiary of Razor, continues to build our first geothermal project in Swan Hills. FutEra is currently examining other projects, including solar, wind and geothermal power at the wellhead. In addition, FutEra recently commissioned its wholly owned 10 petahash bitcoin mining operation, which includes the supply of self-generated electricity and the mining facility. Additionally, Razor has now completed construction of its Virginia Hills soil treatment facility, which will be operational in the third quarter of 2021.

Razor and FutEra continue to identify and seize opportunities to unleash alternative energy sources while measurably improving the environmental and social impacts of our business.

Further information regarding this acquisition, Razor’s conventional oil and gas operations and FutEra’s ongoing geothermal and innovative projects can be found in our updated corporate presentation available at www.razor-energy.com.

FutEra adopts a stock option plan

The Company also announces today that the Board of Directors has approved the adoption of a fixed stock option plan (the “FutEra Option Plan”) for FutEra.

Under the FutEra option plan, FutEra may grant options to acquire up to a total of 284,000 common shares of FutEra (each a “FutEra share”), subject to the terms of the FutEra option plan and applicable securities laws. It is expected that options will be granted by the FutEra Board of Directors (the “FutEra Board”) to certain FutEra officers and employees for retention purposes and in recognition of their continued efforts to help FutEra become a leader. in Alberta. clean electricity production by upgrading existing assets with new and innovative solutions. Once granted, options will be subject to vesting conditions as determined by FutEra’s board of directors, including an expected term of five years from the date of issue.

The FutEra Option Plan remains subject to the approval of the TSX Venture Exchange.

About razor

Razor is a publicly traded junior oil and gas development and production company headquartered in Calgary, Alta. Focused on acquiring, then improving and producing oil and gas from properties primarily in Alberta. The company is led by experienced management and a strong and committed Board of Directors, with a long-term vision of growth focused on efficiency and cost control in all areas of the business. Razor currently trades on the TSX Venture Exchange under the symbol “RZE.V”.

www.razor-energy.com

About FutEra

FutEra leverages the innovation and experience of Alberta’s resource industry to create transitional energy and sustainable infrastructure solutions for commercial markets and communities, in Canada and globally . Currently, FutEra is developing a co-produced geothermal and natural gas hybrid power project in Swan Hills, Alberta.

www.futerapower.com

For additional ImFelmaplease vsoNTact:

Doug bailey

Kevin braun

President and CEO

Financial director

Razor Energy Corp.
800, 500-5e Ave SW
Calgary, Alberta T2P 3L5
Telephone: (403) 262-0242

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements which may be considered as forward-looking statements. These statements relate to possible future events, including, but not limited to, the Company’s investment program and other activities such as the development of geothermal projects and other innovative projects on the plan. environmental and social. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “estimate”, “potential”, “will”, “Should”, “continue”, “may”, “objective” and similar expressions. Forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions regarding the availability of capital, applicable legislation, obtaining required regulatory approvals, ” timely execution by third parties of the obligation, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services, prevailing commodity prices, price volatility, price differences and the actual prices received for the Company’s products. While the Company believes that the expectations and assumptions upon which forward-looking statements are based are reasonable, forward-looking statements should not be relied upon because the Company cannot guarantee that they will prove to be correct. Because forward-looking statements deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry and geothermal power projects in general (e.g. variability in geothermal resources; such as uncertainty in reserve estimates; uncertainty of estimates and projections relating to production, costs and expenditure, and risks to health, safety and the environment), fluctuations in electricity and raw material prices and exchange rates, changes in legislation affecting the oil, gas and geothermal industries and uncertainties resulting from delays or potential changes in plans for exploration or development projects or capital expenditures. In addition, the Company cautions that COVID-19 could continue to have a material adverse effect on global economic activity and global demand for certain commodities, including crude oil, natural gas and NGLs. , and could continue to cause volatility and disruption of global supply. chains, operations, people mobility and financial markets, which could continue to affect commodity prices, interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. The duration of the current volatility in commodity prices is uncertain. Please refer to the risk factors identified in the Company’s Annual Information Form and MD&A which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

ADVISORY INFORMATION ON PRODUCTION: Unless otherwise stated herein, all production information presented herein is presented on a gross basis, which is the direct interest of the Company before deduction of royalties and without including royalty interest.

BARRELS OF OIL EQUIVALENT: The term “boe” or barrels of oil equivalent can be misleading, especially if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas per barrel of oil equivalent (6 Mcf: 1 barrel) is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent an equivalence of value at the wellhead. In addition, since the value ratio based on the current price of crude oil, relative to natural gas, is significantly different from the energy equivalence of 6: 1; using a 6: 1 conversion ratio can be misleading as a value indication.

Or the TSX Vemture EXcash or his Rregulation Servivses Probouncer (like this tuh is defined in the Strategies of the TSX Vemture EXchange) onevsvsephis responsibility For adequacy or avscurity of this neversion ws.

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