New CEOLooks like he has been a deal maker on the sale side with private equity. Maybe, speculation of course, but I am hoping my speculation is correct, he is being brought in to facilitate a deal.
I don't know but I am stuck on that road now vs dividends. I prefer a sale (especially with the feds on the loose again).
I note in today's news release they made reference to ROC in italics. I think this is a good start for communication but there was no reference as to what the debt metrics were going to be before they do return capital. Were the italics to say "hey, we are gonna pay a dividend asap" Or did the italics reference the "sustainable" part of the commentary meaning they are going to be conservative/cautious with dividends? I highly doubt there will be a buyback with such a small float (the only good thing going for it). I am not sure and we will have to wait awhile before knowing since the change doesn't occur until September.
Or, get the dividends humming causing a re-rate of the share price much higher than $22/sh due to yield then sell it off since I don't think 60k/flowing boe is sufficient in this case with the reserves they have and cash flow and no/minimal bank debt later ths year. Even a $2 dividend which, should be very easy to do with a ~35.5MM float with a pile of cash left over, should re-rate the stock to around the $30 mark for about 6.6% yield (reasonable for a producer in today's environment). I realize WCP just set precedent at $60k/flowing boe and I do not know the booked reserves associated with the WCP deal but I do know the wells are not cheap to drill/complete and produce and are high decliners.
One thing I hope they do not do under new management is start to acquire. Man, that would be a nightmare.