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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 24, 2019 9:34am
201 Views
Post# 29770653

Company Needs to Understand Value and Markets

Company Needs to Understand Value and Markets
It is a compelling buy at these levels but management has put them selves in a corner by their continual poor decisions that don't refelect a plan and vision for the company.

Last quater the message they communicated was improved water handling to reduce their carbon footprint and operating costs. However this was such a big deal that they needed to pass on having a free cash flow quater. They are doing a abisimal job at communicating a plan, and address the market place. 

Investors don't have confidence that management will make the right decision. The business plan for VII generation is flawed, it is not about having the best engineer plant they need to focus on being able to generate meaning cash flow. Additional issues is that they are not in a position to respond to market volitility and buy back shares, or provide a meaningful dividend to shareholders. 

The company needs to regroup and determine if it really economical and responsible to own all this infastructure with essentially no plan for the future of the company. Management should be shown the door and people brought in that can make a difference in the management of the balance sheet, share holder confidence and a plan that includes paying shareholders sooner not later.

Overspending in the first quater is simply utter stupidity. If they do the same thing in the second quater they are shooting the company in the head. They need to pay more attention.  
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