Equal Energy Ltd EQU

shareholders proposal slides

[Nawaralsaadi]

This presentation is work in progress, I may edit and update it as time goes on; however it is a good summary of our proposal:

https://www.slideshare.net/nawaralsaadi/equal-energy

Feel free to share it with fellow shareholders.


Regards,
Nawar

[Nawaralsaadi]

I have added slide 8, which is a table showing peers trading multiples: https://www.slideshare.net/nawaralsaadi/equal-energy If we were to trade at anything close to NAE, which has a similar debt and dry gas profile to Equal, we would be trading at $12.6 a share; 320% above current levels. Regards, Nawar

[Nawaralsaadi]

I have added slide 5, which is a slide comparing Equal performance to four Canadian non-dividend paying oil and gas companies with higher NG exposure (55% to 72%) than Equal (50% NG), Equal Energy has under-preformed all of them with a decline of 44% over the last 12 months, vs an average decline of 27% for its peers (19% to 39%): https://www.slideshare.net/nawaralsaadi/equal-energy

[Nawaralsaadi]

added PI Financial net asset value calculation (slide 6), and NAV vs share price graph (slide 7): https://www.slideshare.net/nawaralsaadi/equal-energy Regards, Nawar

[Nawaralsaadi]

Updated the Annex with a new table from TD showing the average trading discount vs NAV for their whole junior and intermediate universe E&P companies. You will note that companies with at least 60% gas (average 79%) and Debt to Cash flow of 2.7 trade at 79% of NAV. Management will have you believe that we trade at under 40% to NAV due to low natural gas prices, don't buy that excuse:

[dbeaude]

Question Nawar. Is PI using the same crude oil and gas price assumptions in their NAV calculation of $12 as TD is using in their comparison table? Thanks for the work you are doing. Appears that Equal has zero geopolitical risk and yet is trading at such a discount to NAV (32%) that one would think that it is operating in Syria or Yemen and not US and Canada. Someone has got to take a run at this

[Nawaralsaadi]

For 2012 / 2013 TD is using: Oil $93.00 - $90.00  GAs $3.75 - $4.25 For 2012 / 2013 PI is using: Oil  $95.00 $95.00 Gas $3.00 $4.00 ---------- Yes, the valuation of this company is ridiculous; companies in Southern Sudan probably fetch more :). I hope that my efforts and fellow shareholders efforts will succeed in convincing management in unlocking this massive shareholder value.  

[Nawaralsaadi]

I have updated slide 3 to add the stock long term graph (split adjusted), as well as I have updated management bonus to $7.5m (in Q4 they got paid more than I expected): https://www.slideshare.net/nawaralsaadi/equal-energy Also, this morning, I sent a harsh worded letter to the company; demanding that they proceed with action to enhance shareholder value prior to the May 11th