Ward mentioned the PE method is to build and flip( eventually) and he discussed this in the video which was recorded in March 2022. However, he went on to say that currently ( March 2022) the market didn't "appreciate" the Anadarko basin so now it wasn't time to sell. The deal flow for buying/ selling was low and in the current commodity price regime, it was better for them to drill and produce and pay dividends. So that is the Camino stated position.
In that context, if Camino sold today, would you guys be crying foul ( not that you care about Camino but for the sake of the discussion) that they "flipped" their monetisation pathway without notice? Just because a sale is the preferred option , if BRK make a deal which involves them participating in a development program for all or part of their SWISH assets rather than selling, that doesn't mean they flipped their monetisation pathway... it just means the best deal they got at the time was development , rather than sale. I do agree that BRK in it's current size , would be more of a deal taker when dealing with the big boys, but BRK will not sell just for the sake of selling.
What I am confident they will not do, is develop the SWISH asset at a pace of 1 well every 3 months.
BRK don't need to disclose who, if anyone, and what they are discussing to in terms of monetisation options. But I do agree , in the meantime, they should do something which IMO is take advantage of the current disconnect , commence an on market share buy back to take those cheap shares off the weak hands and traders, and start unwinding some of the dilution forced upon us.
Silence on the monetisation is not killing the business, the business is going gangbusters. Silence on the Wolf Pack well is a good thing, as it should mean the well is still ramping up it's production and not hit peak flows. Silence is however, fraying the nerves of holders who in this current share price/ valuation disconnect (which fundamentally doesn't make sense) , are understandably having a very hard time.
AS mentioned before, we will most probably wake up one morning with BRK in a TH with an announcement pending regarding a material transaction . When that will be and in what form , sale, JV or farmin will be revealed at that time.
I'm hoping ( for the sake of our mental health
and wealth) , it will come before mid 2023.
Cheers
Dan
(20min delay)