RE: MeetMe Question Strategy – Let’s Coordinate28 May 2025 13:39
From my Q&A with PB last week and I’m sure it will become much clearer at the end of his talk today. Q2 is IMO
JBL:
Of course and naturally, shareholders are asking: what were those institutions shown that gave them such conviction? Is there upside, M&A leverage, pricing power, or operational acceleration that hasn’t yet been fully articulated? And finally, given the 24.2%can you confirm whether any formal protections like the amended June 2021 shareholder rights plan remain in place to protect against a lowball takeover, especially if TXP ends 2025 ahead of guidance?
Paul:
There’s a few parts to that. First, yes—the shareholder rights plan remains fully in place. That can only be changed by shareholders, and nothing has been proposed to change it at this year's AGM.
Second, I just want to clarify-because it’s in the tone of the question-I know these aren’t your words, John, but the idea that institutional investors were given some kind of inside track is absolutely not true. That’s not how we operate.
Institutions looked at the deal and saw that we were raising capital to both keep the balance sheet clean and fund operations, including bringing on 2,000 boe/d from Central Block. When viewed on a per-share basis, this isn’t dilution—it’s value accretion. In major acquisitions across industries, there’s often an equity component, and this is no different. That’s why institutions supported it.
JBL
Yes, I saw the new investor presentation today. There was some reaction to the TR-1s not landing. I know posters are speculating that the 24% was split into smaller chunks under 3%, to avoid disclosure, and I asked IR about that yesterday because posters were pushing for clarity. She confirmed that it’s the buyer’s obligation to disclose if they pass 3%, not TXP’s.
Paul:
That’s right and just to add, many funds split their allocations across internal portfolios, so the holdings are spread under different umbrellas. We just deal with the fund manager directly, and how they report internally is up to them.
Q2 In the recent Imagine Wealth presentation, it was referenced a 16-month lock-in on gas pricing. Can you clarify what that means and how it impacts revenue exposure?
Probable clarification in today’s 1hr talk
This refers to our existing gas sales contracts, which include a fixed-price component that locks in the rate for 16 months from the point of signing. While this means we don’t benefit immediately from rising spot prices, it provides stable, predictable revenue during that period. We’re actively exploring options for improved pricing exposure, including LNG-linked contracts for future volumes particularly from the Central Block.
*Please note Q2 is what I believe what PB was aligning to on 16months lock in but should hopefully get covered this afternoon.
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