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RMP ENERGY INC T.RMP

"Iron Bridge Resources Inc, formerly RMP Energy Inc is a crude oil and natural gas company engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids in Western Canada."


TSX:RMP - Post by User

Post by JackDeeValentinon Mar 02, 2016 9:59am
471 Views
Post# 24612295

John, Craig, Dean looking a bit dumb and lazy

John, Craig, Dean looking a bit dumb and lazyRMP is a company with desirable high quality assets but mgmt are now tools working against what is in the best interest of shareholders There has been PE and strategic interest which they've pushed back on. Such a deal would provide the asset base with a much lower cost of capital and better liquidity. Many strategics such ARX trade at high valuations and issuance of equity could be accretive and create economic value add comparing their cost of capital with the return on capital In an environment like this a mgmt could also look to monetize non-core (valuations all much higher than where RMP trades on asset sales), or sell infrastructure and lease back, or bring a partner to develop well program in Gold Creek, Waskahigan, Ante Creek. These options all represent a much lower capital cost than issuing shares. So lazy, dumb, ignorant or rattled, call it what you want. The cost of capital issuing shares at this price is 25%-30%. Despite a legacy history of putting together a good base of Montney assets and well results, RMP's mgmt have been become slugs working against shareholders given their array of options. Time for these assets to be owned by a better capitalized strategic with a much higher valuation in the public market place or taken private where adult investors can oversee capital outlays, financing and the economic value add. Doing distressed equity, 25%-30% cost of capital financings is inappropriate and utterly irresponsible. Good assets, credit deserved for never getting over your ski's in terms of debt, but this is complete nonsense Time to move on from John, Craig, Dean et al --- fall on your sword, your now hurting this company's long term potential for success
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