RE:RE:Mr. Phil
snowshoedb wrote: I suspect buying something with acreative metrics must be challenging task. Phil is not stranger to acquisition as his background is Corp acquisitions and PNE has done more than a dozen.
phil has done a great job turning PNE into a cash cow. Patience and a sound low decline low cost strategy got us to the current state.
We are 18 months away from Western Canadian Gas pricing becoming linked to World markets via LNG Canada's facility start up. Cash flow will rise dramatically when that happens and the management team will have more optionality on acquisitions, new strategic locations to drill or buy and failing that issue a special dividend.
Today the 50 million is a insurance policy to minimizing the risk of having to reduce/eliminate the current dividend. Many investors have grown accustomed to the regularity of the current dividend.
I'm appreciative of managements patience and in their protection of the dividend. Our day in the sun is coming, i remain thankful for the monthly income.
Yup, it's time to poop or get off the pot. $50 million is a lot of cash to be burning a hole in my pocket if my market cap is 500 million. Ish. My first choice would be a 50-100 million stock buy back. As a SIB, not a NCIB. Keep the NCIB picking away but let's get a Dutch auction organized to get'er done. It's hard to argue any assets for sale out there are priced cheaper than the valuation of Pne stock.
Otherwise, somebody else will do it for us. Friendly or hostile, a bid will come if the $50 million isn't put to use. Good luck.