It's not a metric you'll see very often for sure - IMO useful only when a company is a serial equity issuer or asset swapper. Used it a couple of times before for ASX and TO listed small companies just as a checkpoint for the other more common metrics. You could extend that further to FFO/share or even CFPS - its OK for comparing the company's performance of itself over time - don't think it would have any real meaning against a peer company (maybe rate of change over time).
GLTA.
(I'll be drowning my sorrows over CHK's "sorry(?)" Q4. Their beige hat has become quite grey even though they are in their strongest financial position ever. Another big Capex cut and rig levels down to 2004 levels of approx 35 - wow. Company reached in mid Dec the highest ever production of 770,000 boepd and Qtrly avg of 706,00boepd with 64 rigs operating - half of 2012 rig level. CHK forecasting absolute production drop as early as Q1/15 with statement by CEO of "We are intentionally holding production back in 2015 because we believe it's the prudent thing to do,..." also seems deferring well completions and building inventory is the thing to do also, paying off just to wait on service costs coming down and the contango in oil price that is still prevalent
The street is punishing CHK - while overdelivering on revenue to the tune of $500M more than forecast, EPS came in lighter. The story maybe lies in EBITDA and adjusted EBITDA - if you remove the very positive hedging gains this past Qtr and 2015 hedges look "weak" IMO, the earnings power of their operations is dropping in this low price environment.
After years of holding this one it has turned negative - although dividends and covered call premiums still keep me in the black - so much for buy and hold of cyclical stocks).
SSN Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
