Lot of selling past few days perhaps someone knows the Angola deal is problematic. Otherwise no reason to sell at this price with oil rebounding. If they come out with an announcement then we'll know. That's why it's important for the ceo to be more transparent on the deal it's been 10 months. As usual shareholders are the last to know. If the deal fails their cash liquidity will be used for litigation not exploration.
In same situation, thought it was worth $2.50 without Angola, but obviously incorrect. I've relied on the CEO comments that the deal will close, so held my shares. If the deal doesn't close the litigation will be endless.
Very speculative at this time. Company unable to confirm the Angola deal will close. Until that happens no one wants to own it, seeing large percentage declines in share price. The lack of transparency on this deal is adversely affecting the shares. They will burn through their cash quickly if deal doesn't close, with the Heidelberg cash flow being less than expected, and who know what would happen with the Angola assets if not sold. Has been my worst performing investment.
Market is pricing CIE as if the Angola deal will not close. It's time for the CEO to advise shareholders where this deal stands.
Meant dilutive to the share price, surprised to see a 10% price decline, with a deal that is accretive to cash flow. Deal seems to improve the company debt metrics-with the MRD assets, RRC appears to have the top nat gas assets in the country with the addition of the Terryville property..
Hate to see the share dilution. MRD does have some impressive assets and drilling results with some of the most prolific wells-their website indicates since 2012 they have 2% of the best wells of the 20800 drilled, they have good hedges and operate within cash flow. Deal was a surprise especially after the efficiencies announced at the last call, but RRC says the deal will be accretive from day one and improve their metrics. I think its a very good deal especially with the diversification out of the Marcellus.
These suits are frivolous, very hard to challenge an energy company for a significant energy discovery. Sure the stock price declined after the gas discovery as Cobalt does not have natural gas rights. The big issue for Cobalt is Angola and whether they will close the deal. A significant portion of Angola production is going to China for debt repayment; the low oil prices have had a real negative effect on an economy totally dependent on oil; and Angola is risky place to conduct business. The CEO has said the deal will close. I hope so. Until this uncertainty there is no upside for shareholders especially with the disappointing results at Heidelberg to date, and the capital needed to fund a lot of very promising prospects. However, at $2.5 per share I think the Angolan situation is priced in the current share price-should the deal close we will move up. It's a speculative bet on Angola closing the deal.
Thanks for the advice . I bought put options against most of my shares some time ago until there is clarification on the deal closing and other related issues, then added more after reading the 10K. I take the CEO at his word that the deal will close so I'm holding my shares. However, The 10K makes it clear that there are issues "if the deal does not close the closing of the sale of our interests in Blocks 20 and 21 is not consummated or is delayed indefinitely, we would need to renegotiate our license agreements governing Blocks 20 and 21 with Sonangol to provide for adjusted development schedules and other timelines. There can be no assurance that we will be able to renegotiate such agreements on favorable terms or at all. Such failure could materially adversely affect the value of such licenses. In addition, the Angolan government passed Presidential Decree No. 212/15 on December 2, 2015, which established a new Block 20/15 concession area covering our Lontra discovery. Such Presidential Decree ostensibly conflicts with our rights to develop oil from the Lontra discovery under the Block 20 PSC. Accordingly, it is unclear what effect the passage of this Presidential Decree has on our rights to develop Lontra under the Block 20 PSC, although we are working with Sonangol to understand its significance given the pending Angola Transaction. Should the closing of the sale of our interests in Blocks 20 and 21 be delayed or ultimately not consummated, we would need to resolve this potential conflict caused by the Presidential Decree. Any such resolution may not be favorable to us. As such, failure to consummate the closing of the sale of our interests in Blocks 20 and 21 could have a material adverse effect on our business, results of operations and financial condition, including our ability to service and/or repay our substantial existing indebtedness." While you are correct they have liquidity in the near term, there borrowing limits will be reduced soon.
This is a real mess with the stock continuing to sell off since the call, just a lack of confidence that the deal will close and there will be a resultant impact on liquidity. Maybe they get the asset back, if is so, not sure what company would continue to do business with Angola. Stock is pure speculation at this point. If they can close it should double with $2.9 billion cash equivalent $6-7 a share. I'm not confident.
No way of knowing how long it will take. The State's action is disgraceful and solely based on a political agenda. All along they used the same strategy as Obama did on the Canadian pipeline-just drag the decision making process out, knowing there are no sound reasons for disapproval. There is no difference between Cuomo and Obama on energy-until the voters decide they want economic growth and the ability to take advantage of their unique natural gas resources it will not change. The corruption of the political process has reached levels where it is totally out of control. NY will continue to lose business, and when the financial community decides they have had enough-its all over for NY.
Not a surprising decision by the NY Governor its always all politics. Jobs and economic growth are meaningless to the NY democrats, makes no difference to them that upstate NY is an economic wasteland. I fully expected they would wait to the last minute and not issue a permit. NY is just not a place where you can do business. Unfortunately, Cabot has their great producing assets so close to NY. Hopefully, they can get the Federal Courts to overrule. New Yorkers who will continue to pay higher energy costs with no economic growth. NYC is totally dependent on natural gas with adequate supply, the politicians could care less about upstate NY.
I've never seen a deal where you don't know if the other party is going to close-the lack of transparency is hurting the share price. Not sure what happens if Angola doesn't close, that's the problem dealing with dictatorships. Hopefully, it happens and Cobalt can move on, has some terrific assets, but only minor cash flow. Could be an attractive take over after they close Angola.
Seems like a reasonable target price assuming Angola closes, the lack of transparency on the closing is troublesome. Not blaming Cobalt, but its the price you pay dealing with these dictatorships. Until it happens the share price will remain weak despite the recent uplift to oil prices.