I agree with your assessment of what happened in January. May be shareholders can file a lawsuit against the management ? OR complaint to the SEC ?
In fact, you aint asking too much. The PR style of Hession needs a check up. KEEP US INFORMED , is that too much to ask for ?
Chinese new year starts in two days. This is the last chance for news release before everyone goes home for the holiday. Students already started their holiday. They celebrate Chinese New years in Singapore.
The US has planned this for as far back as 2008. How about Rothschild's clan who wants to re-establish the Khazarian empire in Ukraine ?
Hession did not know how many cards he was deal and he tried to do the best long term with the only thing (E/A) in hand so I don't fault him for that. Wish it was the other way around.
The problem is not his handling of the E/A asset. The problem is the competency of the drilling crew . His leadership in this aspect is disappointing giving the fact that he is flushed with cash but seemingly get stuck with not the best crews and sub optimum rigs.
We blame the PR guys for not communicating properly but it in fact is Hession who tries to hide the drilling problems! Someone ought to ask him in the next shareholders meeting what he has he been doing to improve the dismal drilling performance. May be an email of two should do. If he is being evasive he should go.
You meant to say
Memorial Poduction Partners is well hedged for the next 48 months and no distribution cut today. A good place to hide out and collect yield for 2015, 2016, 2017, 2018.
I couldn't agree more. Between Phil and Hession we learnt a very expensive lesson of the importance of the management. In the current energy company crisis, the difference in the managements of different companies show very vividly. CLR for example, unhedged itself right before the oil price falls off the bottom. CLR shareholders holding a damaged company stock must be wondering if they are facing bankruptcy in the future if the oil price stays low for the next couple of years. MEMP on the other hand hedged their production at 95+/-/barrel for the next five years so they keep their dividend unchanged plus buying back shares.
I worry about how "long term" Hession feels is appropriate. If he decides to wait for the result of Ant6, we may be looking at Shells payment in 2016 instead. I hope you are right about the board of directors, being all heavy weights, can tell Hession to do the right thing.
It also will help for shareholders to voice their opinion too. After all, it is OUR money at stake.
I notice they also mentioned Ant 6 and Ant deep. They really are getting a bargain with their purchase of the minority interest. Hession must be thinking they had pulled fast one on him.
How about take 10% of the cash to buy back some shares. Show some concern for the shareholders and show some confidence in the company. Does Hession believe Total will fork over $1-2 billions in Q4 this year - as was advertised in their recent presentation ?
Group 1 Strong balance sheet strong asset
CXO XEC FANG CHK
Group 2 Strong balance sheet weak asset
NFX PDCE QEP SM WPX
Group 3 Weak balance sheet strong asset
AR EPE LRE OAS PE RRC ROSE WLL
Group 4 Weak balance sheet week asset
AREX XCO GDP HK MHR MPO REXX SOGC SD SFY
Goldman Sucks has a piece out today dividing Shale oil companies into four groups according to the balance sheet and asset quality. Your AREX and REXX are both in the fourth group - a group with weak balance sheet and poor asset quality. This group remains me of the phrase - a bug looking for a windshield.
Why is everyone assuming EVEP will be able to buy quality asset at distressed price ? There are lots of entities out there watching as well. Super majors looking to shore up their portfolio , hedge funds with money to throw at bargains, other less leveraged MLPs with the ability to borrow to buy. What advantage does EVEP has over these other entities ?
What is plan B is they cannot beat out competitors in pursuing distressed properties ? What if EVEP's banker want a pound of fiesh for more fund to go shopping
Thanks to Chandler and Byker, we have a buying opportunity like this even after all the good news. As is, we are at a sweet spot where a bottom is found and the share price has not yet moved too far away. Personally I think a 3 handle will soon be a memory. It may take some back and forth but there are 4 million shares short still need to get out at a decent price and this is it. ( And we have a whole weekend to think this through carefully ).
Think how EVEP will respond when it announce a cut in its distributioin. Got in at 12.25 this morning, got back out at 13.35. I will wait to get back in after the management announce what they want to do , one way or another. Keeping quiet is not helping anybody.