Not a Basher and Don't have a short but...As my title suggests, I am not a basher and I do not short this stock.
I do have several long positions in the energy space - some low (for the times) risk and some high risk.
While this is a stock that I have been in and out of the last year. There are some fundamental issues that I see at the moment - Righand1 (the IR for this company and several others CPG, PHM, ) may be able to answer for me.
How does this company intend to keep a large majority of its land and what do you see as the core holdings going forward. I agree east kakwa is a great asset but I challenge the upside to the project right now. The company has been battling declines in a low oil price environement and has booked a significant amount of inventory there (middle montney). While i agree as well there are multiple horizons, capital will natural gravitate to highest ROC for a given play. Does this mean the other horizons are less prolific (probably though this is my opinion based on current capital allocation.
I am concerned that insiders do not own more. The DCK board members have the highest ownership and it seems that there has not been a buy in at these levels by any insider. This is not a deal breaker by any means but disappointing none the less.
With regards to West Kakwa, I understand the idea behind this, let others de-risk and value up the land. Only issue is on expiries and my thesis on deploying capital to your best projects. If the industry slows down de-risking this land will these lands be at risk of expiring thus reducing future upside.
these are questions i hope people are asking. I ask these of every company I own the high and low risk. If i am going to throw capital at an investment though let it be a binary outcome 0 or 1 (with 1 being a 10 bagger, 0 being s*** out of luck)
As always, appreciate the responses from the IR team on the board