3 months on after the formation of hbr12 Jul 2021 09:53
And no one is buying the story. Our illustrious ex leader TD, did say this deal ( reverse take over) was not in the interests of pmo shareholders. He was right but sadly was not able to steer pmo off the rocks.
Soder, as one the spokespersons for the muppets as you so affectionately call people who disagree with you, the reason why hbr is not benefitting greatly from the surge in gas and oil prices is due to the requirement of its lenders to hedge 50 % of its production. So, if its not leveraged, as you claim why are lenders dictating hedge policy to detriment of FCF ?
And another thing, today's news makes the reserves much less valuable as no one will want to buy it other than, er pemex, so they get it at a knock down price ie hobsons choice. Not good. Poor outcome in fact.
Soder, indeed it is an oil company but also sells gas which is also enjoying a huge price rise ( although regrettably hedged by hbr due to lenders requirements ) As regards scr credentials compare bat, which sells products that kill people ( cancer links proven) yet it is solid mmeber of the ftse 100 club and pays reliable divis that makes it attractive to huge respectable pension funds.currrntly the yield is 7 %. So, the scr issue is just an excuse, hbr mgt need together their finger out and move the sp to a respectable level and not frig about with share consolidation s which mask the real price, ie 20p atm.Should 40p, old money, 800p new money. That would be mgt earning its keep.
I'm not impressed with a performance target that will simply be achieved by benefitting by the commodity boom in oil prices. Anyone can do that, its just part of the natural commodity cycle. Much better to reward the execs on performance metrics relative to peers.That way rewards are "earned" and not simply received involving no skill or achievement at all. Rope , money and old come to mind.
Considering all the hype about under valued this share is and " must be throwing off cash " comments, together with consensus broker valuations of circa 600p. Despite all this the market is unconvinced and the buyers are not coming through in the volumes we need. The story is not being bought by the look of it. Hbr mgt need to work harder.
Not much of a stretch to reap the shares rewards just given to the 3 exec s at an sp at historic low and oli at historic high. I think this is gilding the lily, . Just rubs more salt in the wounds of long suffering pmo holders. Hey ho.