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Seven Generations Energy Ltd. class A common shares T.VII

"Seven Generations Energy Ltd is an independent energy company focused on the acquisition, development, and optimization of high-quality, tight rock, natural gas resource plays. The company employs long-reach and horizontal drilling to produce resources of natural gas, condensate, and natural gas liquids. In addition to drilling operations, Seven Generations owns several gathering lines and processing facilities. The company depends on a skilled technical and business team to identify, capture,


TSX:VII - Post by User

Post by MyHoneyPoton May 17, 2019 3:16pm
84 Views
Post# 29756825

30 Dollar stock needs smarter Management.

30 Dollar stock needs smarter Management. I don't where management head is but it need a shake. 

Looking at the wells from 2018 compared to 2019 you getting longer better wells, with 16 more stages for 87% of the cost compared to a year ago. 

This is what the management should do to get the stock to 30 dollars in 3 months, the company is not broken, only the way it is being managed. 

1. Buy back 5% of stock immediately, it is trading at 25% of it value.
2. Sell all infastructure and lead back from mid streamer, 1.4 billion sale. 
3. Debt is now 1 billion with 320 million shares.
4. Implement a 2 dollar dividend.
5. Live withing Cash flow and grow the company. 

With a 2 dollar dividend VII generation will pay our 640 million a year, 1340 left for company without any future capital for plant. The op cost will go up a bit but i don't imagine a lot as they are carrying a lot of extra plant. The mid streamers can do a better job at plant than internal management. 

6% return 2 dollar dividend stock will trade at least 33 dollars with no upside for production growth. The management should be shot for the stock trading at this dismal level. 
If it traded for 30 dollars that would be fine as well, i really don't know what management things their building but they have destroyed the stock in the process. 

IMHO
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