ROK Resources Inc (QB) (ROKRF) Quote

I am getting very positive on ROK, ROKRF. Hard to see anything bad. Down .55 to .31 Cad in about 8 months but they may be worth more now than then. Yet 44% lower cost now. Oil is higher than then and headed down then not up now.

Debt? Since March 2022, the Company has retired more than $55 million of debt while increasing its base production from 3,000 boepd to 3,750 boepd (>25%). The Company has retained a $22.5 million revolving credit facility, with current net debt estimated at $10 million.

Hedging Update: As a result of the early Term Loan repayment, the Company made the strategic decision to unwind certain commodity swap hedges placed in 2023, 2024 and 2025. BTW they made a bunch on hedges they put on in 90s. I think oil is now going to $100ish. They played it smart first time, think they are also this time.

Management for a $66 million Cad company is superb and proven. They have built and sold at a profit 3-4 oil companies in past. The COO is young.

How did they pay off all that debt? "Notably, since the FCL acquisition in March 2022, the Company has disposed of approximately $74 million in non-core assets representing ~31% of production and ~127% of the purchase price, after closing adjustments." https://rokresources.ca/assets/rok-resources-inc-investor-presentation-july-2023.pdf

BTW it was selling a tiny percent of Weyburn Unit (all that they had) for a lot. So they make a 27% profit in 1 year yet kept 69% of what they bot production wise, Wow! So the debt is almost gone now and they have 3.750 bopd production. Their usd mkt cap is $50 million. They sold $15 million Cad more than their entire current mkt cap and yet still have 69% of what they bot, just selling 31%. Seems they are good dealmakers.

2023E Net Debt/EBITDA is 0.2X, 2023E EV/EBITDA 2.4 and they are free cash flowing.

Did I get any of this wrong?