GNE - Genesis Energy

[Raven]

so after all that, why are they not just going back to the two step - 1) dig up coal, 2) burn coal...seems a bit simpler and less energy wasted

Biofuel is "green" technically carbon neutral (ignoring the carbon footprint of making it), unlike fossil coal.

[Basil]

Biofuel is "green" technically carbon neutral (ignoring the carbon footprint of making it), unlike fossil coal.

The irony is that over the extremely long haul Coal is probably carbon neutral too
https://en.wikipedia.org/wiki/Coal#:~:text=Coal%20is%20mostly%20carbon%20with%20variable%20amounts%20of,pressure%20of%20deep%20burial%20over%20millions%20of%20years.  Problem is nobody wants to acknowledge it came from dead wood and plant matter or cares about what happened so long ago.

I'm looking forward to hopefully hearing an update about their large scale solar plans.  500 MW of solar is the medium term plan if my memory serves me correctly.  That's a LOT of solar panels !

[BlackPeter]

The irony is that over the extremely long haul Coal is probably carbon neutral too
https://en.wikipedia.org/wiki/Coal#:~:text=Coal%20is%20mostly%20carbon%20with%20variable%20amounts%20of,pressure%20of%20deep%20burial%20over%20millions%20of%20years.  Problem is nobody wants to acknowledge it came from dead wood and plant matter or cares about what happened so long ago.

I'm looking forward to hopefully hearing an update about their large scale solar plans.  500 MW of solar is the medium term plan if my memory serves me correctly.  That's a LOT of solar panels !

Absolutely. Burn all the coal we can dig up and we end up with a globe something like 6 degrees warmer than today. From memory - it comes with a close to 100 meter sea level rise, but otherwise whoever survives should be fine. So did the dinosaurs 400 million years ago (when planet earth had these conditions and the coal was not yet in the ground but in the atmosphere). Oops, did they ??

[Basil]

LOL BP, this one is definitely not for you, I think that much is perfectly clear !  Just remember that burning that coal is what's currently helping keep your heater on this winter and your or other people's EV's charged up...don't start me on the irony of that.

[Shareguy]

The comments made by Contact regarding negotiations with Rio sound encouraging. Looking forward to Friday

[Shareguy]

Met Craigs lofty guidance. A decent Upgrade for FY23 based on Craigs guidance

A good result

[Basil]

It must be a great result, the front page of the presentation starts with a Beagle with its ears flapping LOL.  This is obviously tailor made for me as a classic dividend hounds stock.   I need to BUY more .
Presentation here http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GNE/397203/376841.pdf

Annual Report here http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GNE/397203/376840.pdf

[Shareguy]

I have had a busy day so going through the results today.

Once again another great performance. Guidance at $455m for FY23 (Ebitaf).


Swaption contracts expiring in December 22. Potential for more variability than in previous years. 
We are going to just have to wait and see I think.

Good to see the reinvestment plan with its 2.5 percent discount in play.

Unless more gas is found what's in Kupe is going to be more valuable. Look at what's happening with world gas prices.

Looks like the black pellet trial delayed till 23. Customer satisfaction up but still not good.

Happy holder and will put the gas fire on tonight for sure

[Plata]

Ah yes, the typical misleading clickbait stuff news article is up now. Was wondering how long it would take.You cannot view this attachment.

[Basil]

We're well insulated from what's happening with power, gas and LPG prices in Europe.
Some of the pricing I have seen on CNBC means European customers are paying north of the $400 per barrel energy prices for their LPG and gas with power not far behind.  That's scary.

Against that backdrop, much higher carbon credit prices and inflation of 7.3% its inevitable that customers will have to accept higher prices for energy here.  It is what it is.  I'm sure they'll run more of those cute T.V. advertisements with the Beagle in it and all will be well. 👍👍  (You'd almost bet money I helped with the creation of that add)

Disc - fully subscribed to the shares in lieu of dividend plan so I get more cheap shares and compounding returns going forward.

P.S. I note from the annual report they are hopeful of announcing something material on their large scale solar development plans in FY23 along with the biomass trial and talk in their of Rankine units having a life out to 2040 or maybe longer !

[Basil]

https://www.rnz.co.nz/news/business/473148/genesis-energy-profit-jumps-to-221m-from-33m-in-one-year?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Saturday+20+August+2022

[Shareguy]

Here's a copy of earnings call. Some interesting stuff here.

https://finance.yahoo.com/news/edited-transcript-gne-nz-earnings-230000593.html

Those coal reserves that were purchased cheap have insulated the power prices big time. Looks like investors to get the benefit too.

Just as well that gas assets not sold. Look at world gas price ....

[Plata]

Am I correct in thinking at todays coal price of ~$380 USD per tonne that GNE has over $340 million USD worth of coal stockpile? $550 million NZD?

[Shareguy]

Craig's latest. Overweight and number one power pick with increased divi to continue.

Target Price $3.70 (prev. $3.81), O/W retained
Our Target Price is based on our forward DCF valuation (WACC 8.0%, Tg 3.0%, average RFR 4.2% (prev. 4.1%)) resulting in $3.70 (prev. $3.81). We retain an Overweight recommendation. Key risks include regulatory change, wholesale and retail competition, and project development risk. Our sector preferences are unchanged, and in order of GNE, CEN, MEL all Overweight,

Plata yes you are correct. The gas reserves are worth a fortune as well.

[arekaywhy]

Ah yes, the typical misleading clickbait stuff news article is up now. Was wondering how long it would take...

yeah those rich pricks, how dare they make a prophet *cough*