Not all companies are equal - particularly so companies where you don't control price (e.g. commodity based companies) and where you don't control the "technology" (e.g. internet). Management makes the difference in these companies generally speaking.
Rob, you highlighted a number of other companies like AKK for instance. Yep SSN is way ahead of them in most (all?) metrics and transparency. But you left off ones that are ahead of SSN in every way. If this is a Qtrly that most would dream of, then what LNR.AX reported must be well .....
Anyway, when opining and laying out data, trends and interpretations thereof there are no dramas wrt defamation.
Even saying things like what could the mgmt of SSN done differently wouldn't be defamation. Examples:
1. SSN took their "moonshot" with the Roosevelt project. Should a minnow sized E&P company be taking that sized risk looking to extend a shale play where the GCOS was well known? Probably not but as Buc says it is a risky speculative play.
2. SSN could have hedged better. That is clearly a mgmt call (recall Harold Hamm's rather poorly timed cashing in of hedges costing CLR $billions). This is purely and simply insuring your cash flow. Yes you sacrifice upside profits, but when you know your full cycle F&D costs are $69 Bbl you need to protect the cash flow where you put that capital to work. Bu, we went around in this several times. I pointed out the difference with LNR and their level of hedging.
3. SSN mgmt does not have a crystal ball and neither does any other oil company. They are not responsible for the POO. But mgmt is responsible for preparing their company long term and short term cycles. After all it's a commodity. What's that quote about when the tide goes out you see who's swimming naked? Likewise a rising tide floats all boats.
In that vein, what is the plan for the RBL that matures in Jan'17. At this point, key issues like Reserves are declining (being produced), PV is declining (lower oil price), production is declining (I'm talking sequential not YoY) need to be overcome.
Perhaps the 10Q will have more info.
Always bemused by these board spills. Have yet to see one work (for the shareholders per se).
SSN Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
