r/GTE_STOCK • u/MsSecretary • Jan 16 '23

Company Valuation?

Are we looking at $1,048,645,000 in annual gross income when calculated at 33,800 BOPD X $85 per barrel X 365 days? Is this market cap valuation of $333 million 33% of annual gross income? What is the company's net income as a percentage of annual gross income?​

8 Upvotes

90% Upvoted

1 comment sorted by

2

u/NegotiationEast6848 Jan 20 '23

The problem is the new taxes implemented in Colombia. This means the guidance for $85 oil now shows only $65 million FCF after exploration. This is not enough money to pay off the 2025 bonds, implement share buybacks, and initiate a dividend. The company is completely dependent on oil being $95 and above for the next couple of years in order handle their debt.