RE:RE:RE:ENs latest tweet shows Ath top 30 for buying back shares!cahclick wrote:
Sugaree wrote: Can't wait for those damn warrants to finally gets exercised and be done with them.
OGInvest0r wrote: Keeping up nicely with the big boys like the banks and CNQs of the world. The little engine that could. From imminent bankruptcy two years ago to top 30 buy back companies on TSX. Go Ath go.
All those warrants they gave away with the refinancing deal has effectively cancelled any benefit of the NCIB. That's one whopper of an interest payment.
I hope they learn from recent history that gobs of debt can sink the golden goose.
The message to management is pay off all debt and finance expansion through sales not loans !
go ath go
And NEVER trust the banks. They'll throw you under the bus without a second thought. Yes that debt refinancing was the most extreme I've ever seen. The alternative was turn off the lights and the debt holders owned 100% of the assets. Dark days for all small and mid cap producers. Some perished. So , since then, the warrants ..... it is what it is. Since then , cash flow has indeed gone 100% to debt reduction. They eventually had the extreme pleasure of firing the evil bankers that provided their line of credit. The line of credit they needed to export oil. The one that the evil bank required 100% of the line, whether used or not, to be completely covered by tbills on deposit with the bank. So the bank took their usual fees for doing absolutely nothing. Oh, how I wished to be in the boardroom or at least zoom called for the meeting where the arrogant, obnoxious, evil, bankers were fired. Now that the debt is 100% paid off, we look forward to the capital allocation plan. Buying back stock has started and is the simplest fastest shareholder value creation tool. Yes the warrants were/are a giant anchor but, it is what it is. So we'll eat up all those shares, and whole lot more if oil stays over $80. It sure beats buying assets or making a major capex expansion to grow production. There is no project or asset package available that's better value than buying their own stock. And it's risk free. No exploration or exploitation risk. It's already humming along. Best energy investment anywhere !