New staffing for efficiency, responsibility, etc makes me wonder how Schiller sold the Street such a bill of goods for his previous philosophy and mode. The increased dividend payout and stock buyback authorization are large band aids over an open wound in the gut. You can make a realistic case for buying the stock now at $23.50 if you can look at yourself in the mirror and say everything you believed and bought at $35 was a major mistake.
Difficult to argue with success. No one wants to be the first to buck a trend.
Dormie just who knows enough to answer your question.
For years I have been sort of queezy re this co. For one thing way too much money goes to the multitude of compensatory programs. Employees may be there soley for a quick buck and not for the pride of doing a good job I fear.
There are a lot of short Puts going off for May at $22 and $23 where the premium harvest looks reasonable with the increased dividend and repurchase authorization providing a backstop to the share price.
I think the buy back and dividend increase was to try and stabilize the price, nothing to do with returning cash or creating value for shareholders. If existing Exxon and Apache explorations prove out the cash will be needed for infrastructure. Of course those are a good ways off and the current Pendragon bore is a P&A.
Mr. Schiller, spend the money on improving the existing production equipment's reliability and maybe even the through put capacity. Proven reserves in the ground are good but flowing those reserves to the market is even better.
No question they had to stop the slide in the stock price. It's been an embarrassment for them and would have put themselves into play had it continued. I don't really like admissions that buying their stock back represents their best investment return at this point. It's not the type of characterization you want for your future prospects. I did like the commitment to produce positive cash flow, but the bloom is off the growth rose here.