No stock awarded - GAAP charge related to return of previous stock
Sometimes GAAP rules seem to make no sense whatsoever. This is one of those instances. SN took a huge charge related to stock based comp during the quarter but there wasn't any stock awarded. In fact this was for all the stock that was previously returned. Because it was surrendered GAAP rules require that the expense be accelerated. At least that was the explanation given on the call.
Other than this item the call was very positive. The Maverick well came in with incredible production. I'm not sure that they got an credit for that lease. Then they announce that they have encountered the lower Austin Chalk in the area directly adjacent to the Eagle Ford and they think they can produce both zones with a single well bore.
Thanks Double, I had thought maybe they found another way into the cookie jar after they got their hands caught the first time. This company has tremendously promising lease areas and will be a big winner for shareholders if management plays nice even though they have majority control. Hope we don't end up facing a Chinese-style buy-out.
They broke up the partnership that created a controlled company and issued shares to the individual members. As a result they are putting an independent compensation committee and governance committee in place. You're right they have huge upside potential.