RE:Any one home On the Board of Directors?This firm is one of the best run in the entire Canadian space, period!
The redetermination cut the line by half. We knew it, it has been the case everywhere. Yet, because of very prudent management, they still have significant slack on the line. Never needed to issue a single share in the downturn. Streamlined their asset base, still managed to pay a dividend (although like many on the board, I could not care less about a dividend in such times)...all of this adds to the point where they are now free cash flow neutral at $47 which is about where the current strip (not spot) is.
Tell me which small E&P firm grows organically (i.e. without diluting shareholders or issuing more debt)...well, I have got the answer for you: None!
The current pricing environment is still horrendous for the space. Only a handful of firms are cash flow neutral (and still modestly growing) at these prices. I see Surge and Granite Oil.
Yes, Painted Pony is growing fast, but its debt has expanded as well. Again, almost no E&P can grow WITHIN CASH FLOW at these prices. The fact that Surge is sitting comfortably even at these commodity prices just tells you that this is a very unusual firm. Well run, and with excellent assets of low decline pools of oil (conventional not shale)...
Yes, not the most explosive/exciting company out there, but potentially one of the best run. Kudos to management, keep up the good work and thank you for making sleep easy on at least one of my large positions!