Post by
PabloLafortune on Jun 17, 2024 11:58am
Summarizing share based compensation for 2023
The devil is in the detail:
1) share count at 12/31/22 was 192M shares. Share count at 12/31/23 was 194.5M shares. 2.5M shares were added.
2) Company received $8.4M in proceeds from options exercises or $3.36 per share.
3) Guesstimate cash SBC cost based on $6 share price = $6 x 2.5M shares less $8.4M = $7.6M or $0.70 per boe (not sure where I find the average share price for 2023).
4) $7.6M SBC represents 2.4% of 2023 capex budget.
5) 2.5M shares issued represents an annual dilution of ~1.25%.
6) Top 7 Managers each exercised ~100,000 shares (728,000 shares) - low was 94,000, high 110,000 shares. A wild guess at the average gain (too much work to calculate exactly) is around $3 per share or $300,000. Only Lalani exercised and reinvested the net proceeds (ie kept some shares). We can safely conclude that this is pretty much a tax planning exercise.
7) David Wilson exercised ~250,000 shares and kept all of them.
8) By my guess, the insider transactions account for a little less than half of the 2.5M shares issued. My guess is the rest were issued to employees and contractors who are not insiders.
9) Assuming non insiders also dispose of these options upon exercise, the average daily volume of such sales is ~10,000 shares.
10) With an average daily volume of ~300,000 shares, this is 0.33%.
11) On US holidays where the volume drops down to an average of 100,000 shares at best (I looked up 5 - 82K, 102K, 74K, 133K, 71K - Juneteenth is coming up this week), those sales are 10% of the overall volume.
So in reality if we exclude all the hedge fund buying and selling, these options are a significant portion of the daily volume. Significant.
Comment by
gassygeezer on Jun 17, 2024 12:46pm
Pablo you've done public shareholders a beneficial review of what a growing number of shareholders are discovering and some of us have tried pontificating...MHP will be providing rebuttal, perhaps this time he'll provide valid input including cyclical downturn pricing/demand,operational mishaps and stock dilution into his rosy projections