Member Info for JamesOxford

@Robert KKR does indeed buy companies for cash, and it has a clear appetite for companies that operate within the O&G industry. I do not know if KKR is interested in Wood, but it would not surprise me if it is. Certainly Wood is a far better investment for KKR than Thames Water.

@Sheeponfire Well done on your pay rise from Wood. Lets hope for all long-term shareholders that Wood either negiotiates/accepts a decent offer from a bidder (Sidara on another bidder), or secures finance from lenders on favourable terms and continues to carry on alone for the benefit of employees and shareholders alike.

I have said it before, I will say it again: Word is on the street that there is another bidder interested in Wood. I do not know if it is KKR - but I do not rule it out. After all KKR is already involved in the UK's energy recycling sector. KKR acquired Viridor for £3.7B in 2020. KKR's investment in Wood would be small change for KKR and would compliment their investment portfolio. As an investor, I have learned to rule nothing out...especially when it comes to Wood!

@Bandit1 @Kandos. Good posts...spot on with where Wood (and shareholders) is at the moment.

@Isle A quick look at your post history says that you have it in for JO. You are probably not aware that I only invested in Wood on the back of the Valentine’s Day share price massacre. I have been averaging down further ever since even when they share price was at circa 18p. I am quite happy with my low 20p share price.

Isle you are deep underwater with this Wood stock…it’s pretty obvious.

PS. Keep up the good stories about your wood golf games with senior management…none of your predictions based on inside information from your contac yeaht at Wood have come true it’s all there in your post history. Enough said.

@Icecool 'People like JO just want a clean ride up to 35p so they can bank profit, then move on, that’s fine, and honestly I could easily do the same.'

As an investor, I look to achieve a decent profit every time I invest - I make no excuses about it. The profit margin from the current 18p to 35p is substantial. My buy price is in the very low 20s, so the profit is still a decent return. I am pragmatic about all my investments. I base my opinions on facts, and the fact is that it is clear that Wood is for sale, due to a series of self-goals...that date back many years.

Icecool is is more than clear that you want a new BOD to turn Wood around and push the share price up towards the 'glory days' of £2 plus. Easier said than done.

Further, it is not correct to blame the BOD for all of Wood's woes. In my view the BOD have been misled at various points along the way by senior/middle management (some of whom have now left the company), which has become obvious due to the Deloitee review. For example, 'someone' within the Projects Dept has 'cooked the books' in terms of revenues/costs/margins/profits - that responsibity is with the Projects Dept. Another example, the CEO/BOD does not check the qualifications of its CFO - that responsibility is with HR.

The reality is that Wood has looked at finance options and have come to the conclusion that a sale to Sidara (or another bidder) is the only way forward and acts in the best interests of Wood, lenders, employees, shareholders etc.

The BOD have received reports, insights and advice from specialised professionals and it seems to me all agree a sale is the best option. I doubt that a new BOD would come to a different conclusion based on the in-depth information at hand - information that no one outside of the BOD and a select few others have access to...and certainly more information than any of the posters here (myslef included).

To change the BOD now could be an absolute disaster in the making.

Hopefully commonsense prevails and the BOD remain.

@Setana I don't know of many/any CEOs who provide running commentary on their stock prices - it is pointless to expect/ask them to do so. CEOs have no control over their stock prices, period. Most investors want to recieve updates from CEOs on company development, results etc. not their opinons on market-driven stock prices, which is entirely outside of their direct control.

@Icecool Let's play your scenario to replace the Wood BOD...

Wood has a mass change of BOD. New BOD enters reviews all available information with advisors, lenders, stakeholders. New BOD comes to the same conclusion as previous BOD. Wood is still for sale. That is indeed the most likely outcome new BOD or not.

The market will determine the share price. CH has no control over the market, so why comment on something you have no control over. Pointless.

Investors invest in Zephyr and it's clear and potential - and are not bothered about share price movements. Whereas, traders are fixated with share price movements. Personally I am happy to stay firmly in the former camp.

@Icecool We can agree that Wood has created a huge mess for itself. As an investor, I have seldom seen a company produce as many 'own-goals'!

As a reminder, take a look at the article below on Wood realeased 14 February (a very black Valentine's Day indeed for Wood shareholders):

https://www.morningstar.co.uk/uk/news/AN_1739526874804369900/john-wood-plans-cost-cuts-disposals-as-bleeds-cash-amid-weak-trading.aspx

The article states:

'For 2025, John Wood is targetting a further around USD85 million of annualised savings from 2026 onwards, with around USD60 million benefit in 2025. This is in addition to the USD60 million of savings already planned for 2025. These are "on track", the firm said. "Following these actions, the business will be on a firmer operational footing, but cash generation has yet to materialise and financial strength needs significant improvement". John Wood now expects negative free cash flow of USD150 million to USD200 million in 2025.'

Read that again, and again until it sinks in: '...cash generation has yet to materialise and financial strength needs significant improvement'

AND arguably more importantly, the article states...

'With the majority of the group's debt facilities maturing in October 2026, it has decided to undertake a detailed assessment of all potential refinancing options. "As part of this, we are engaging with the group's lenders on these options together with any potential implications of prior year adjustments which may arise from the independent review," John Wood said.'

Fast forward a few months, and Wood releases the RNS which states:

'Work continues on a range of alternative refinancing options to provide the Company with an appropriate and sustainable long-term capital structure. Having carefully considered the viability of these options together with its financial advisers, the Board of Wood currently believes that the Possible Offer represents the better option for Wood’s shareholders, creditors and other stakeholders.'

It is obvious that Wood lenders require Wood to inject cash into Wood to shore up its balance sheet and for liquidity/security purposes prior to lenders approval of renewal/new loans. Of course Wood also needs to provide updated/adjusted audited financials, as previous financials were not worth the paper they were written on - a minor matter...not! Hence, why the Sidara offer is probably the best route forward.

As Wood secures large and healthy new contracts, that is a positive.

Next stop AGM.

GLA

@Icecool I will accept the well considered views of Wood with my colleagues (with collective experience in corporate finance of over 120 years) combined with Wood's own RNS (mentioned in my post below), over the rantings of a random poster here called 'Icecool'!

At the moment, you are anyting but 'cool', in fact for some time now, you have been at boiling point...my guess is that you are way under water on this stock and 35p is no where near break even for you.

@NelsontheDog Agreed. Zephyr's investor will be very keen to start production especially given the test results. Next stop for Zephyr investors: a clear pathway into production and soon. That is a given. Time to turn on the tap for cash flow. GLA.

On the positive, Wood is securing decent profitable new contracts at a fast clip. There is far more on the horizon also.

On the negative, Wood's lenders were blind-sided by Wood's negatve cash-flow.

Lenders like to lend to companies with strong sales, positive cash flow, decent margins and profits, and stong tangible assets (amounst other criteria). Wood fails in two key criteria i.e. cash flow is negative, and assets are mainly intangible. This means Wood's lenders are effectively lending on a negative cash flow basis and with loans that are unsecured, which is dangerous territory for lenders for obvious reasons.

It is for this reason that Wood is 'minder to recommend' Sidara's offer of 35p cash per share for shareholders, and $450M in cash for Wood as a company for liquidity purposes, as 'safety net' for lenders if you like, which although is mentioned is needed for 'sustainable long term capital'; the reality is that it may be needed at any time. For example, should Wood continue to produce negative cash flow or lose contracts or have contracts canceled etc.

This is why Wood's RNS explicity states:

'Work continues on a range of alternative refinancing options to provide the Company with an appropriate and sustainable long-term capital structure. Having carefully considered the viability of these options together with its financial advisers, the Board of Wood currently believes that the Possible Offer represents the better option for Wood’s shareholders, creditors and other stakeholders.'

If Wood can continue to secure new contracts and keep their lenders happy enough, then Wood can continue on its own. If not, Wood will use Sidara (and any other bidder) as their fall-back position.

I spoke to a few collegues about this situation yesterday (all in senior corporate finance - and well versed in lending to large private and public companies), and we are of the same opinion that the CEO and BOD ought to be re-elected in order to provide stability to Wood, especially during uncertain times. Ken has implemented many changes since the Deloitee review - all of it positive. Sometimes, it's better the devil you know, thean the devil you don't know.

GLA

@GRaff 'The 35p was only offered to make Sid's final offer (of 60p- 90p) look better'.

Indeed Sidara's 35p offer with conditions was made when Wood was under duress and attack from all sides. Sidara's offer never accounted for synergies, cost savings, and Wood's future growth prospects. In my view Sidara should have taken the bull by the horns and offered 35p then and there, which at the time may well have been approved by shareholders. Since then, Ken has made hard and fast decisions, and Wood has made serious in-roads with regards to new sales and focus on cash-flow.

There is an old saying: You snooze, you lose. Maybe Sidara has been caught napping...

It would not surprise me to see Sidara increase their offer, or risk that Wood is not longer 'minded to recommend' and instead has decided to 'reject Sidara's offer due to material improvements in Wood based on new contract wins and positive cash-flow forecasts'.

If this comes to pass, then all bets are off:

A: Sidara offers higher price (Sidara wants to buy Wood, as much as they wanted to buy Worsley);

B: A new bidder is formally announced; or

C: Wood carries on alone...with confirmed audited accounts in 12 months, plus continued new contracts wins, positive cash-flow, and profits - the Wood share price ought to recover to decent levels once more.

@Kando Good post.

For me the jury is still out on Ken's performance...

Ken talked up the fact that Wood was focused on positive cash-flow, but then reported negative cash-flow...this blind-sided and shocked lenders (and shareholders).

That said, since the Deloitte draft review Ken has made some serious changes, CFO gone, Director of Projects gone, new interim CFO with considerable experience and ability to refinance in, certain BOD on the way out, and a clear focus on quality sales/contracts. A new CEO with considerable experience in teh oil and gas industry would be beneficial. However, Ken's work since the review is to be applauded.

Good solid RNS from Zephyr. The two key statements for me are as below. Great to see CH has already identified another $30M of drilling with further updates to come. Added another chunk today while the Zephyr share price remains at bargain levels - a no brainer. I am very happy with my holding here and I expect further positive developments over the next 3-6 months. GLA

'The estimated normalised gas EUR/1000' lateral length forecast for the 36-2R well (0.8-1.3 BCF/1000') and across the greater development area (0.8-2.5 BCF/1000') suggest potential well performance that is comparable to the top six per cent of hydraulically stimulated horizontal gas wells across all the key lower 48 onshore US plays, based on production, well data and EUR assessment from the Enverus Prism database.'

And,

'In respect of the Company's newly formed acquisition vehicle Zephyr Hawk, as announced on 13 May 2025, the Company is pleased to report it is in the process of assessing approximately US$30 million of sourced drilling opportunities which have the potential to be funded through the Company's new US$100 million strategic partnership. The Company will provide further updates to investors as and when individual transactions are finalised.'

Zephyr RNS here:

https://www.londonstockexchange.com/news-article/ZPHR/operations-update/17058780

@Dogger69 'What happens if Sidada walk away?'

As mentioned earlier (a few times) now, Sidara are at the table and want to buy Wood. Do you need me to post the latest RNS that shows Sidara is still at the table with their offer with conditions? Dogger you need to keep up with events - you are too busy wishing/praying for Sidara to walk away, which will not happen as Sidara want to buy Wood in order to enter the big league. Unfortunately for you Dogger, you have shorted the wrong stock, so it will be you who walks away with a heavy loss. Lol

I look forward to Zephyr's full results on the drill - it cannot be too far away now. I added a decent amount on the day the initial drill results were published. If the detail on the full results on the drill are confirmed as favourable, I will be more than happy to add another decent amount. To date, Zephyr's RNS statements have been flowed on well and been consistent from the previous RNS, so the signs are very positive. That said, the proof will be in the pudding. Of course, we are into a new tax year, so cash is at the ready in anticipation! Lol

Just to add - the shorters will do fine as the price has dropped substantially since they shorted. So it will be a case of how much profit. On news of a formal offer, the shorts will be amoungst the first to close their positions...especially of more than one bidder (Sidara) is involved! Lol

Word on the street is that there is one potential rival bidder for Wood due the low offer price (with conditions), synergies, cost savings and Wood's future growth prospects.

Will Sidara offer 35p for shareholders and $450M for Wood, or will Sidara up their offer to 45p and $450M to have a better chance of success, or will another bidder offer more in the knowledge that Wood future growth prospects are obvious? Let's see how this stock play out over the next few months.