There is an answer to this - never again invest in a UK oil & gas company - life is that simple
Get real
Why not hire a Rotchilds start a sales process and see what happens?
Oil and Gas companies need to realise that the UK has become a banana republic where the mob rules.
Harbour seem to realise this and are moving investment with the expected result on headcount and reserves
Investing in carbon capture in the UK is definitely a mugs game. Investing in carbon capture outside the UK is probably a mugs game. Please stop wasting shareholders money on populist crap.
Recognise that oil is the new tobacco
Maximise shareholders returns and damn the begrudgers
‘Low ball’ is the share price
Double “low ball” would be a reasonable buy starting offer but still ‘low ball” when compared to earnings, capital invested and mine reserves value.
I recommended the last post
However i feel the market will not rerate this share. It has not done so to date so why now.
There are only 2 options - (a) a buyout (b) a slow grind out of returns in the form of profits/dividends/buybacks.
This is a good company and a mediocre share
Harbour’s problem is that they are mostly UK based and the UK Government stole the shareholders assets without the decency to do so in a way that would result in arbitration reimbursement.
Oil prices dropping sharply to the USD 40 range while hedges are in place and before Winter might be the best result at it might result in the UK Government being shamed into getting rid of the windfall taxes.
Terrible share to be investing in when that is probably its best hope
It takes many years to develop oil and gas production so the few months before thw windfall tax was introduced but during which it was being discudded did not give time to do so
Going further into debt to buy international assets at what might ge the peak in prices of gas and very high in the oil price scale at a time of increasing interest rates made no sense
Life is a lot better if you sell what you hate and move on. Learn to relax.
The poor share price is due to the UK banana republic
Why blame the company or its board - put the blame where it should be, sell and move on
Problem is the bulk of the production is in a banana republic
The losses Rookie1 is suffering are more probably due to the Windfall Taxes and and a weak banana republic than share buybacks.
High blood pressure is a killer so should be avoided
Share buybacks when the price of the share is below what you feel it is worth makes huge sense. If you believe that is not the case then you should sell the share.
Should the company take advice on the legality of taxing us at 75% and other companies in the uk at a fraction of that. If it is legal would it trigger international laws or inter country agreements i.e. if it does so does it open the UK to an arbitration case (may require moving the holding company to another jurisdiction) it does seem strange that in this interconnected world a country can take suck rxtreme tax action without actually being open to be forced to buy and pay for the asset.
Looks simple.
There is no future in the UK and the North Sea. It makes no sense buying a company with its producing assets in the UK. It makes no sense seeking additional acerage in the UK. The only capital invested in the UK should be into very high return and short payback infill projects.
The future is in developing international assets yielding a high after tax return.
The UK Government has made its decision. A Labour Government will not change that. At least the old dictators had the decency to nationalise the assets and eventually pay retribution rather than steal the cashflow and virtue signal.
The Board seem to be going down that road so why not support that or sell out and relax.
Hopefully not
Well done on opting out of the latest licencing round
Doing the right thing is never easy. Weak government have done the wrong thing. It should result in less investment in the UK and ultimately more cost to the country.
By doing what they are doing Harbour are ensuring that actions have consequences and hopefully in the future Government will act with backbone and ensure the environment for investment will be improved.
Well done and damn the naysayers!
No - i think people just realised UK is a banana republic
Do not buy uk assets
Do not take on debt
We live in a new world - use your brain
There seems little point in arguing undervaluation and what is in or not in the price
Bottom line is if we keep generating cash at this level, pay out by way of dividend and buyback, avoid m&a like the plague then value will arise to the remaining shareholders regardless of market games.
Relax and keep the concentration of management on running the business for the benefit of the shareholders.
We are in a new world. The old rules do not apply. Tax is now so high in the uk that maintaining or increasing production makes mo sense.
Time to think more strategically and to be blunt more intelligently.
.
Just run the business we have properly, collect the cash and pay it out to the shareholders. We have plenty of assets worth investing in.
Why borrow money when
1. Government are a bunch of no backbone socialists
2. Risk of inflation/slowdown with resultant drop in oil prices
3. High interest rates
4. Governments and idiots hate the oil industry and will only cheer as it is destroyed and hurt
5. Belief/drive /decisions that oil is in decline and a lot of assets will be shut in over time with ZERO value.