RE:RE:RE:RE:RE:RE:As Usual PIECE of CR@P!!!In my opinion (and only my opinion), if you step back and look at Management, you see a team that was extremely successful on the way up. They did a tremendous job of doing deals and raising money and you can only do that if the investment community likes you and if you have a great pitch. Bear in mind that CPG used to trade at around $160,000 / flowing bbl, which was a premium to everyone in the sector. Now they trade around 1/3rd of that.
Down market hit, they didn't see the severity of the downturn (few did), they kept doing deals and raising money and they themselves didn't have a plan. The Coral Hill deal sucked, the Legacy deal sucked (timing, not assets), the assumed debt from those deals was punitive, etc. Now, they have lost investor confidence, lost their premium valuation, and lost the one thing that I think they were really good at - doing deals and telling a growth story.
In my opinion, this is not an operationally focused Management team. Not to say that they aren't trying to be internally focused right now, but they just aren't good at it. They aren't turnaround guys. Their D&C costs should be outrageous low in their core geographies. They are basically the only operator (for all intensive purposes) in the Viewfield Bakken. Corporately, they built a palace in the nicest building in downtown Calgary. Why? What customers are they parading through that require that level of extravagance?
Cation isn't trying to control the Board. They've got 4 nominees, two of which shouldn't be on the Board (Tom and Sandy) and you don't have to vote for. But, IMO, people should vote for change. They have had 3 years to cobble together some form of plan and re-engage with the investors that have shunned them and they've done none of it. A mild shake up of the Board, with two capable Cation nominees, should scare the sh*t out of the other Directors and Management that it is time to actually do their jobs and be accountable to the shareholders whom they represent. Absent this Cation fiasco, this would have been another Scott Saxberg "aww shucks" AGM, with everything rubber stamped and a guy who did a terrible job in the last year walking away with millions of dollars in bottom dollar stock options.
Again, in my opinion. Take it for what it's worth.