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Correct, Jiffy - He and James Hudleston were the initial founders. 2004. ~That was the time and place for the nominal free shares....
The reason RT has got so many shares is because he as the founding shareholder issued them to himself for free/nominal amount.
AS has plenty of incentive from the company bonus scheme!
Are we all going to get interrogated as to how many shares we have and how we got them? Who cares a toss?
Where is the 4K holding figure from? I’m sure he holds far more than that plus he’ll have various vested options.
So why buy?
RT did not buy his 26m shares, and neither did AS so in reality the only difference is one created the company and the other works there.
'I simply cannot understand why now this criticism of the CFO has emerged here, now. Unless it's yet another 'dig' at HUR in a manner as to instill fear in shareholders' minds and think there's something going wrong.'
I am not fearful of it as such,but am questioning it as to why that's all. Would be a good exercise in looking at other companies if the same state existed, and yes maybe the FD is a special case.
I do know for example the same scenario exists with SXX.
Anyway, off to bed now, Good Night.
"So, going back to AS, you have to ask yourself why has RT got 26M and AS 4K? "
How many times?
They're both oilmen. One I've met, the other I haven't, though hope to do so one day. Stobie (although his speciality is finance, is a roughneck at heart.)
One's the lord of the manor, the other's the head gardener, who doesn't get his hands dirty, but has a small army of minions pushing wheelbarrows around and wielding forks to keep his lordship's gardens nice and pretty.
He's paid a good salary for doing that, everything's OK, there are no nasty patches of nettles appearing, so why should he go and buy some extra rosebushes out of his own pocket while things are keeping the lord and lady of the house happy?
I simply cannot understand why now this criticism of the CFO has emerged here, now. Unless it's yet another 'dig' at HUR in a manner as to instill fear in shareholders' minds and think there's something going wrong.
"If you own for example as many shares as RT, then all being equa,l you will be motivated/empowered to protect that value surely?"
Yes, of course. But Directors' shares are not necessarily 'issued' to them at stockmarket price. In fact, very very few of 'em are.
Unlike an individual 'Directors' Buy', which may be during a placing, or whatever. Just to show good faith and keep other shareholders' confidence.
Not to be confused with a 'company buyback', which usually means a takeover;s in the offing.
There has to be a positive connection between a Director and his / company perfomance, and his owning shares in the company that he manages , and his own motivation to enhance the value of his held and other shareholders as that is a basic tenent of being a PLC Director. Otherwise the model is Bust.
So, going back to AS, you have to ask yourself why has RT got 26M and AS 4K?
They are both part of the same team, its an interesting conudrum and may be non sensical or it may be that AS simply has no desire to hold shares.
(Still nightshift I note, though for a change it's not because of poker, just preparing Christmas cards and being nocturnal.)
"So if I am reading you correctly, the CFO should always remain impartial, because he has his hands on the financial Tiller, he knows what financial reality is at any given point in time?"
Yes, that indeed the way I see it. Maybe an old-fashioned point of view, I must admit. But as one of the BoD, and also CFO, he is privvy to Operational stuff as well, and Stobie being Stobie, can instantly translate those into financial terms, because he's no fool. Be those positive or negative informations.
On which point, as it's in the news, who's the one person in Tullow who's been retained on the Board? The CFO.
(And btw, read NOTHING into that 'aside' comment. Hurricane ain't Tullow! I think it'll be a long time before HUR sinks into the complacency and reliance on debt that TLW's old people did!)
"So the moment that he does buy, is that a massive signal that the SP will surge North? (Most probably IMHO)"
Qui? Stobie? Reckon you've got a long time for that to happen. If ever.
"At what point therefore does he become a financial investor in a company that he manages? (That is the $64000 dollar question)"
Being under no obligation to do so, and being already nicely well-off (I think), why should he ever do so?
"Yes I know there are what are called 'Closed Periods' where Directors are not allowed to buy shares because of inside knowledge/information but AS has had ample opportunities along the lifetrack of HUR to build a position, that is what I am saying I suppose."
Yes, and has not done so. Why should he change track now?
"Is this Negative or Positive?"
"Is it because he is a Tight Fisted Scot? "
Could be part of it... :-))
Not sure on this point , are shares given to directors free of cost? yes they are awarded based on options to purchase xxx numbers at a given price.
So bottom line is, if as a Director you can purchase shares at a market discount and that adds value to your own personal wealth then logically that is what will happen.
If you own for example as many shares as RT, then all being equa,l you will be motivated/empowered to protect that value surely?
"on the same level of risk as you and I and so they are seen to be striving for shared goals?"
No. Still don't comprehend that idea. Or rather the first bit. 'Same level of risk'. No. Or rather,it's relative. If the company were taking the same risks (as seen by themselves) as I were by investing in them, I'd be utterly foolish and crazy to do so. It'd be like giving my money to someone who I thought might put it on red at a roulette table in the hopes of 'double or quits' (which I could have done myself), and instead they plonk the whole lot on number 17. A blind bet.
The 'shared goal' is to make money. Me by buying shares, they by doing the legwork, drilling, chartering FPSO, producing some oil and selling it, etc..
Two different games.
So if I am reading you correctly, the CFO should always remain impartial, because he has his hands on the financial Tiller, he knows what financial reality is at any given point in time? (yes of course that must be the case)
So the moment that he does buy, is that a massive signal that the SP will surge North? (Most probably IMHO)
At what point therefore does he become a financial investor in a company that he manages? (That is the $64000 dollar question)
Yes I know there are what are called 'Closed Periods' where Directors are not allowed to buy shares because of inside knowledge/information but AS has had ample opportunities along the lifetrack of HUR to build a position, that is what I am saying I suppose.
Is this Negative or Positive?
Is it because he is a Tight Fisted Scot? :O)
"but it would be nice if he owned more, there is a common held belief in investing that having 'Skin in the Game' is assuring in that it puts the management on the same level of risk as you and Iand so they are seen to be striving for shared goals?"
Agreed. But it's just that, a 'commonly held belief', and to my mind a completely wrong one.
Maybe in this modern world, some children under the age of six or so believe that Father Christmas comes down the chimney and fills their sock hung on the end of the bed with presents. I sincerely hope so at least, and that their parents continue to foster such ideas. Until reality begins to kick in, and that's always a bummer, on both sides.
Sure, I'm happy (very happy) that most of Hurricane's BoD hold lots of shares. But also, happy that the CFO doesn't. Because to me that means that the company's 'worth' is being bolstered by the people doing the operational stuff, and not being hyped by bean-counters.
This is another reason I stick to my Hurricane shares like glue. It's almost like a throwback to a past time. A CEO who is a geologist, operations being engineering -dictated no matter what the cost, and news appearing on results, not wishful thinking. Isambard Kingdom Brunel sort of ground-breaking stuff.
Just look at the pictures. The CEO is happier (or more comfortable) giving a 'thumbs-up' wearing coveralls and a hardhat in front of a flare than in front of a camera doing an interview.
Good enough for me.
If the ship for some reason goes down, maybe I'll be lost as well, maybe I'll find a lifeboat and survive. But I won't be worrying about the fate of the Pursor. But if we reach the other side on the ship. as hoped, he'll probably be amply rewarded, even if he didn't do such chores qs checking the passengers' lifejackets during the voyage, and so on.
Anyone heard of a company IPO-FX,
No , Do they sell Pizzas@ :O)
This is why I ain't selling anytime soon, so long Trigger!
Just another pointer, Re Spirit Up For Sale, Ineos?
on the same level of risk as you and I and so they are seen to be striving for shared goals?
I take your point......but it would be nice if owned more, there is a common held belief in investing that having 'Skin in the Game' is assuring in that it puts the management on the same level of risk as you and Iand so they are seen to be striving for shared goals?
Missed out on that one.
"A spokeswoman for Spirit said that intention had not changed and that the company still planned to “move towards” becoming operator.'
Plus the link you posted.
All good stuff. Thanks.
Spirit IS for sale. Roll up, roll up...
"Mr Stobie does hold shares in HUR albeit 4,632"
A rather 'nominal sum' though, isn't it?
Nope, doesn't bother me at all. AS has (in his role as CFO) seen this company through thick and thin so far, so I've no complaints. Why should he buy shares, when maybe instead he wants to use his salary to buy physical gold or something like that? Which is a far more certain 'bet'.
As said, I rather like it when the CFO has no significant 'vested interest'. It means he can do his work in an objective and impartial way.
This if correct EV, is also a very important positive pointer for HUR, given Lincoln result?.
'Spirit farmed into the GWA in September 2018, taking on a 50% working interest.
At the time, Spirit said the aim was to progress Lincoln and Warwick towards full field development, should the well campaign and further tests be successful.
Spirit would take over as licence operator at the development stage.
A spokeswoman for Spirit said that intention had not changed and that the company still planned to “move towards” becoming operator.'
Mr Stobie does hold shares in HUR albeit 4,632
Name Position Appointed Last Deal Total % Shares Held
Jason Cheng Non Executive Director 2016 na na
Dr David Jenkins Non Executive Director 10/11/2016 0.02 203,338
Roy Kelly Non Executive Director 2016 na na
Steven McTiernan Chairman 2018 27/11/2018 0.02 375,000
Neil Platt Executive Director 25/01/2018 0.03 607,383
Sandy Shaw Non Executive Director 2019 na na
Alistair Stobie Financial Director 2016 25/01/2018 na 4,632
Leonard Tao Non Executive Director 2016 na na
Dr Robert Trice Chief Executive Officer 25/01/2018 1.34 26,246,291
John van der Welle Non Executive Director 10/11/2016 0.01 154,159
I admire your very objective post, especially as it only seems to be your second, so you appear to have put some thought into the matter.
However, there are three of your points which struck me as particularly important.
"6. Crystal Amber. I don't think this can be overstated. When that number of shares are being sold in the market, what chance has the share price got."
Agree completely. Bernstein of CA doesn't give a dam about Hurricane Energy, it's operations, its future, nor whatever. He's interested in his own company, its (his) own profits, and that's about all. I'm prepared to believe (maybe) That CA's divestment of some of their HUR holding may have been to help finance their increase in DeLaRue, but not entirely. Because CA 'topping up' in DeLaRue strikes me as utter madness, the sort of thing a complete neophyte PI might do in a snake-oil outfit. DeLaRue has LOST that all-important passport-printing contract, and that's it.
CA must be watched by all serious HUR holders. But if they 'dump' further, it'll indicate a possible new 'farm-in ' time at low prices.
"7. Yes Mr. Stobie. Put your hand in your pocket and show that you have faith in the company."
This is something I continue to disagree with. Mr Alistair Stobie (who I have met, in a few circumstances nothing to do with HUR, in deepest Africa) is a very sharp cookie, and an unusual beast. A 'jobbing' CFO, with a lot of companies under his belt, some held at the same time, with a very good understanding of the operational side. Rock-solid. He garners a good salary for doing what he does, and (I think) has a very good appreciation of any possible 'conflict of interest' accusations which might be held against him if he were seen to hype things (as a shareholder) to his own benefit as such, should things go operationally wrong.
'Director buys' are not always a good thing. Cf SOU, cf (more recently) RBD.
"8. The language of the RNS was at best meek. If you have a product you want to sell then damn well sell it. Hopefully Dr. T. will be a bit more effusive with the good news next time."
Yes. But I don't think Dr T and Hurricane are in the 'selling' business. The figures will speak for themselves. The word 'monetize' does not equal 'sell at the best price, now!) Hurricane is just quietly producing oil and selling that (already about 17% of Tullow's projected worldwide output) and at considerably less expense, and no debt.