OTCQX:GXOCF - Post by User
Post by
jerrybeon Jan 20, 2017 10:51am
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Post# 25733617
When is Granite Oil going private?
When is Granite Oil going private?Granite Oil is at a point in its development where it simply does not need to be publicly-traded.
It could hedge five years out and generate all the internal cash flows needed to develop its infrastructure and further drilling. Why bother with a market that is not giving a high valuation?
The 10 year plan is very clear, just develop all the acreage they have and they can do so without any new capital. In some sense, it is a very boring (steady, low debt, low decline and cash rich) company. A very different animal from most E&P firms that are publicly-listed.
Management already owns 24%...with the current low valuation and oil prices that firmly stand above $50 (getting closer to $60 on the futures curve), this is the time to take this one out of the game.
Any thoughts? Can someone see a reason not to go private here? I am tempted to add just for the dividend. It is beautiful to just sit there and collect...