Pinecrest is a neat little company with excellent gas holdings, albeit small. Like many small companies, they have hamstrung the benefit of higher prices with "hedges" on about half their production at about half the prevailing gas price, likely imposed by their bankers. Debt is falling fast and is nominal today and management is first class. They benefit from Chairman George Fink as Chairman, a legend in the industry. I haven't held any shares but I expect the company to do very well.
No. I stay away from small cap U.S. focused companies in their entirety owing to the hostile business environment in America under Joe Biden. Southern looks poised for substantial growth but it is not for me.
Nine Point Partners apparently is the 7th largest shareholder of SDE, even though their ownership is only 0.71% of the company. One can only hope Eric has some influence on management (1) rapidly paying down debt (2) buying back shares and (3) starting to pay a dividend, which to the best of my knowledge, they are not doing currently. If CEO Kalantzis can pay himself nearly C$2.5 million dollars a year, I think it only fair that the company gives shareholders a taste of the FCF bounty to the company from high oil and gas prices. At least, that's how I see it and what I wish for.
If I thought the company was being influenced by a fund manager, I would dump my stock. Eric is a great analyst but to the best of my knowledge has never run any business and his formula is the same for every company, a bit tedious, and obviates the need for management or a board of directors. SDE is paying down debt very quickly (likely debt free this year) and I am sure the board will think about its dividend policy in the context of its capital program and other opportunities. There is a pervasive natural gas supply deficit right now and if I were managing Spartan Delta I would think about increasing output with IRR's in the 300% range rather than buying back stock, and would recommend a dividend to the board equal to 50% of free cash flow.
Thank you Michael. Always a treat to hear you at #COM twitter space...
Hello Michael,
Have you looked at PNE.TO? They've been stuck on that price and they are around 88% gas
Pinecrest is a neat little company with excellent gas holdings, albeit small. Like many small companies, they have hamstrung the benefit of higher prices with "hedges" on about half their production at about half the prevailing gas price, likely imposed by their bankers. Debt is falling fast and is nominal today and management is first class. They benefit from Chairman George Fink as Chairman, a legend in the industry. I haven't held any shares but I expect the company to do very well.
Dear Michael,
Have you looked at SOU.V?
No. I stay away from small cap U.S. focused companies in their entirety owing to the hostile business environment in America under Joe Biden. Southern looks poised for substantial growth but it is not for me.
Honestly I´m going to start buying, based on your opinion pieces :)
I´m in europe and I beleive that this energy "boom" is here to stay for a while ( even with some drawbacks).
Again, thanks to share your ideas.
Nine Point Partners apparently is the 7th largest shareholder of SDE, even though their ownership is only 0.71% of the company. One can only hope Eric has some influence on management (1) rapidly paying down debt (2) buying back shares and (3) starting to pay a dividend, which to the best of my knowledge, they are not doing currently. If CEO Kalantzis can pay himself nearly C$2.5 million dollars a year, I think it only fair that the company gives shareholders a taste of the FCF bounty to the company from high oil and gas prices. At least, that's how I see it and what I wish for.
If I thought the company was being influenced by a fund manager, I would dump my stock. Eric is a great analyst but to the best of my knowledge has never run any business and his formula is the same for every company, a bit tedious, and obviates the need for management or a board of directors. SDE is paying down debt very quickly (likely debt free this year) and I am sure the board will think about its dividend policy in the context of its capital program and other opportunities. There is a pervasive natural gas supply deficit right now and if I were managing Spartan Delta I would think about increasing output with IRR's in the 300% range rather than buying back stock, and would recommend a dividend to the board equal to 50% of free cash flow.
Thanks. This is very helpful. I appreciate your feedback.
Your title gave me an instant chuckle ... "Why I manage my own money" ... cause you're so good at it!