Management has no credibility
Does anyone here remember them talking about how there were no issues with marketing the Unita basin oil? I remember a conference call when they were asked why the differentials are rising, and they said it is temporary.
Now they came out last week and admitted it's a permanent thing.
In the meantime, they were increasing spending in the Uinta, even though they knew differentials were widening.
-Management said the dividend was safe, and then promptly cut it 80%.
-Management said the remaining dividend was easily manageable, and then cut it down to 4 pennies a year.
-Management saying that their action plan was brilliant, only to completely torpedo it within 6 months.
-Management saying that the best person for the job is Craig Bryzka (wtf whatever his name is) yet he is part of the same group of fools who got CPG in this mess.
-Management saying how amazing Duvernay East is, yet they just cut capex there dramatically. At $300 an acre, you get what you pay for.
Why is CPG crashing day in and day out?
-No dividend, so now management has more cash to burn and waste. Shareholders get nothing except fairy tales.
-Worst management in Canada. Zero investor trust.
-No material insider ownership, even at these pathetic levels.
-Zero response from the institutional investment community. The stock gets dumped every time they go for a roadshow.
-$4 billion in debt with no plan to pay it off.
Unless oil prices hit $70+ AND stay there for 4 years minimum, CPG has no hope of paying off its debt. I have no faith in their ability to pay off any debt at $50 WTI.
When the debt is due, they will either have to get new debt at higher interest rates or issue more stock at these all-time low levels. Either way, it's not good for shareholders.
In order to get the stock moving up again, this needs to be done:
1) Fire all management from the cursed Saxberg era. Hire a veteran from outside the company.
2) Get a new Chairman of the board who the street actually cares about.
3) Sell off Uinta assets and put all the proceeds towards debt reduction.
4) Incentivize new management by giving them millions of stock options at C$10 a share.
5) Slash expenses further. Get rid of all perks.