Majid Shafiq, CEO of i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF), presented at the Proactive One2One Investor Forum, providing an insightful overview of the company's journey and future strategy.
Initially listed in London in 2017 with a single UK license, i3 Energy pivoted to Canada, acquiring significant production assets during the 2020 commodity price crisis. They now boast a production rate of approximately 17,000 barrels per day, acquired for a mere $18 million USD, representing a highly efficient investment.
Shafiq detailed their 2023 capital budget of $31 million, aimed at achieving an average production of 20-21,000 barrels per day. i3 Energy's asset base, primarily in the Western Canadian Sedimentary Basin, includes key areas like Clearwater, Simonet, and Central Alberta, offering significant growth and production potential. The company's approach balances organic growth through drilling and low-cost acquisition opportunities.
Shafiq highlighted their strong M&A expertise and technical skills, especially in executing rapid transactions in response to fluctuating commodity prices. i3 Energy's strong shareholder base, primarily in the UK, has been supportive, enabling significant equity financing. They project a net operating income of $90-95 million for the current year and expect to declare dividends of $20 million by Q4 2023. The company also holds complete ownership over many of its assets, providing financial flexibility.
Shafiq emphasised i3 Energy's commitment to sustainable dividend payments, a promise made to equity investors during their initial funding round. The company's acquisition strategy has been highly successful, capitalising on depressed oil and gas markets to acquire assets at exceptionally low costs.