Conference call with management Earlier today I ha Earlier today I had a conference call with the CEO Mr.Don Klapko and the CFO Mr.Dell Chapman; the conference call was in response to the letter I sent expressing shareholders disappointment with the current strategy; and our desire for a radical change, such switching to a dividend model after divesting the Canadian assets, or selling the company.
I am not at liberty of disclosing everything that was discussed, however I will provide the summary:
The conference call was cordial, but heated at times. Mr. Chapman appeared more collaborative and more attuned to shareholders concerns; Mr.Klapko was a bit more confrontational, It seems he took my criticism as a direct attack on him.
In regards to unlocking shareholder value; they seemed open to a dividend model; through selling the Canadian assets, and keeping the US assets in a trusts (Hunton, the Mississippian), this is the model I prefer (similar to Parallel Energy Trust and Eagle Energy Trust model); however it seems that they find the timing inappropriate right now to proceed with such a model; I got the impression that they wish to wait until NG prices to improve before proceeding.
In regards to selling the company, this was not discussed much, but it is clear, if they sale now, the Hunton will not be valued properly in the marketplace.
They also talked about the Mississippian and confirmed that a deal will be announced within March (or so), they seem to be comfortable with the terms of the deal; but I was not privy to the full details.
They also mentioned the possibility of spinning off the Canadian assets to shareholders in the form of another company (I am not a fan of this model).
Mr. Chapman mentioned that they agree that the statuesque cannot continue; and that they are aware that they need to be looking at several options.
Unfortunately, I would say I don’t think management is in a hurry for a major change, while they are aware for the need for it, they seem sanguine about it. I did mention that several shareholders have been waiting for years, and they cannot just keep waiting.
At this stage, I am assessing my options, I will either get fully involved and increase my ownership to 5% (after which I will have to stop posting) in order to lobby strongly for change from within the Board; and in collaboration with other parties that maybe interested; or I may slowly exit the investment in the next few months. I can assure you however no matter what I chose; this company is indeed worth at least $8 a share if not $10, with a proper plan this company will create a lot wealth for shareholders.
Regards,
Nawar
PS. I repeat, if you have a sizable investment in the company; and you wish to support my efforts to unlock shareholder value, please email me at Nawaralsaadi@yahoo.com