Management is doing the Wrong ThingsVII generation tells investors they get 83% returns on wells, yet the majority of thier capital goes to plant, than at best will generate a 10% return.
VII generation investent in plant is over done, and is robbing share holders of return on equity. I blame the management for their reluctance to return capital to investors for the poor performance of the stock.
Gas plants running at capacity may have a 10% return to the company, gas plants built and empty have a drag on the company who pay interest on a facility with no return.
If vii generatin had less debt and less capital plant spend they could easily be retruning 1.20 a share in dividends.
When well are returning at rates about 60% the investment of capital in plant is low by comparison. Low return plant capital should be focused on wells and FCF generation. The management philosophy is messed up and it is old thinking and they do not fiscally know how to operate the company.
IMHO