$FET total debt down to $173.8MM following Q1 earnings. ($100MM of LT notes + $73MM on the credit line which is down from $90MM at 12/31)
Net debt = $146.1MM
The governor on buybacks is the net leverage ratio requirement of 1.5x LTM adjusted EBITDA (~$94mm at 3/31)
I speak with management regularly and they said point blank on the call that they want to buy as much stock back here and it’s still cheap relative to peers at 2x the stock price.
They need to generate ~$7mm cash in Q2 before the ratio is satisfied, after that I expect 100% FCF up to the Q2 ER to go to buybacks. How much? Hard to say. But they had $21mm FCF in Q2 2024, I suspect (guess) they can find $15mm this year. That should allow for ~$8mm of buybacks late Q2/early Q3 (4% outstanding).
They are fighting some EBITDA softness as rig counts fall but should still be able to get $15-20mm into buybacks this year at low end of EBITDA/CF guidance which would be meaningful.
$2mm bought back in January was enough to fuel a beginning of the year run that put them +30% and a huge relative move vs. other OFS names.
$FET total debt down to $173.8MM following Q1 earnings. ($100MM of LT notes + $73MM on the credit line which is down from $90MM at 12/31)
Net debt = $146.1MM
The governor on buybacks is the net leverage ratio requirement of 1.5x LTM adjusted EBITDA (~$94mm at 3/31)
I speak with management regularly and they said point blank on the call that they want to buy as much stock back here and it’s still cheap relative to peers at 2x the stock price.
They need to generate ~$7mm cash in Q2 before the ratio is satisfied, after that I expect 100% FCF up to the Q2 ER to go to buybacks. How much? Hard to say. But they had $21mm FCF in Q2 2024, I suspect (guess) they can find $15mm this year. That should allow for ~$8mm of buybacks late Q2/early Q3 (4% outstanding).
They are fighting some EBITDA softness as rig counts fall but should still be able to get $15-20mm into buybacks this year at low end of EBITDA/CF guidance which would be meaningful.
$2mm bought back in January was enough to fuel a beginning of the year run that put them +30% and a huge relative move vs. other OFS names.
I guess LUX does too. It's a turn off for me. Yes they have been buying stock but with the company's money.
Old Cindy @ OIS holds herself in very high regard?