Comparison to HZN

I've posted from time to time about HZN as a valid comparison to SHE, and keep a fairly close eye on their announcements despite unfortunately not being a holder.

HZN is obviously a more mature business in terms of cashflow and market cap, but in a lot of ways they are very similar and in my mind it's an easy comparison once you simply scale HZN down by a factor of 10x it's a fairly close match to SHE on a number of key metrics.

Anyway, HZN put out their half-yearly today and in addition to another dividend announced there is some great reinforcement & clarification of their strategy across three pillars: Maximise Free cashflow from current ops / Distributions to Shareholders / Continue to invest in new production growth


There is also a really powerful graphic on how net cashflow is generated (revenue - opex - tax), and then how that cashflow is split (debt repayment + new growth capex + distributions)



I imagine, and DREAM of the day that we get something so crystal clear from SHE on their strategy and capital management plans. An annual distribution of 0.3cps (equiv ~AUD $2m) is easily achievable and leaves room for reinvestment.

We just need execution and clear communication now.

Compare to what you see/read in a typical SHE quarterly or annual report...and it's chalk & cheese unfortunately.