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Posted On: 03/06/2019 9:28:23 AM
Post# of 163
TGA will generate FREE cash flow in 2019 again (slide 6)
Based on the new presentation slide 6 below, CapEx for 2019 is just US$34 million, which is well below the projected annual operating cash flow in 2019, so TGA will generate additional FREE cash flow this year:
https://www.trans-globe.com/upload/announceme...final3.pdf
Net debt was already negative in September 2018 because the company's cash was higher than its debt. This trend continued in Q4 2018 and it's easy to calculate that TGA's FREE cash flow continues in 2019 because CapEx in 2019 is just US$34 million while TGA will generate about US$90 million operating cash flow in 2019.
The CEO says that they are looking for the right takeover targets to use this free cash flow.
So TGA will have both organic production growth this year and growth through acquisitions thanks to its free cash flow. It will be a very interesting year.
Based on the new presentation slide 6 below, CapEx for 2019 is just US$34 million, which is well below the projected annual operating cash flow in 2019, so TGA will generate additional FREE cash flow this year:
https://www.trans-globe.com/upload/announceme...final3.pdf
Net debt was already negative in September 2018 because the company's cash was higher than its debt. This trend continued in Q4 2018 and it's easy to calculate that TGA's FREE cash flow continues in 2019 because CapEx in 2019 is just US$34 million while TGA will generate about US$90 million operating cash flow in 2019.
The CEO says that they are looking for the right takeover targets to use this free cash flow.
So TGA will have both organic production growth this year and growth through acquisitions thanks to its free cash flow. It will be a very interesting year.
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