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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 retiredengexecon Aug 07, 2020 1:50am
511 Views
Post# 31377253

No sell or Go Private

No sell or Go PrivateRecent SP moves demonstrate underlying value. Therefore no sale as value is north of 10. Remember institutional owners own about 60 percent of shares and CPPIB the largest owner is in at 15. As far as going private is concerned, there is no liquidity. Going private only makes it easier to sell to a large buyer and in this market shale has lost its luster. Best course is to get free cash flow up and pay down debt. Thankfully they have finally figured this out. As far as a buy is concerned they have limited ability with current debt levels. I'd like them to buy NVA or BIR. In a later installment I'll take a stab at what their SP could be. BTW I like what they have done this year. David Holt should be CEO for what he has done for Opex and D and C costs. Mainly I think he's gotten rid of the second rate people in these areas. There well costs at just over 7 million per well are super considering that they were as high as 10.5 at one time.
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