RE:Another Buying Opportunity
They are the only company to sell shares to shore up their balance sheet without any kind of acquisition this year. More like two years if you ignore failed companies that had to recapitalize.
8% dilution shows that they failed to manage their balance sheet exposure in the past year. It shows the idiocy of a high debt load with very little gas hedging. It also shows either a poor relationship with their lender synidcate or an inappropriate credit structure. I would guess both. You had to know that restating the reserves and type curves would bite them eventually.
what you are missing is management.
They blew it. Now they have to get lucky with some decent drill results or shareholders will be left holding the bag another year. ( I say lucky because they missed their production forecast for most of the last 8 quarters.) Unless at that time their lender syndicate says, to drop the debt load to 80 million before considering any other options like a dividend or buy back.
And then maybe 60 million....?
12 months ago they were forecasting buybacks and a dividend by the end of the year. Instead you got dilution another 12 month delay.
Why people are not far more irritated with them on this board is beyond me.
It is a value trap. There are dozens of companies with better prospects out there with a fraction of the risk or drama.