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$Colombia and Latin America
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Re: South American E&P 6 .... some ratios Frontera Energy "So the lesson is Buy Frontera because (1) they have great ratios, (2) they have huge possible upside offshore Guyana and (3) they aren't in Peru?" -P_H Frontera should be able to reach, possibly exceed 40K boe/d by year end or early 2022. Peru was tough but allowed Frontera to pay out once upon a time a handsome dividend. The Frontera enterprise value suggests the market so far appears not willing to recognize the offshore Guyana potential. It makes me wonder if capital markets are much more segmented than I originally thought them to be. Any insights on this would be appreciated. Frontera is doing a terrific public relations job in Colombia from what I see and read. But in terms of promotion in North America has largely gone dark for reasons I do not understand. I like Frontera in part because its workforce is unionized. Roughly 90% of FEC employees -- field and office -- in Colombia are unionized. USO accounts for 7%. A relatively new union -- UTIPEC -- represents the rest and also represents approximately 700 contractor employees. USO = Union Syndical Obrera. USO organizes the Ecopetrol workers who have been/can be more militant. Some USO officers have been ELN sympathizers though one should be careful to not condemn the entire union because of this. Some USO locals have actively and effectively opposed hydraulic fracturing though they appear to be bit players in a much larger social movement opposing fracking. UTIPEC = La Unión de Trabajadores de la Industria Petrolera y Energética de Colombia UTIPEC is a Samuel Gompers-style, pro-productivity union. It appeared to have been useful in ending community road blocks earlier this year and I expect the union to be helpful in promoting company interests going forward. |
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