RockRose Energy – The interview you’ve all been waiting for

RockRose Energy – The interview you’ve all been waiting for

Like a lot of other investors, I’ve been eagerly awaiting Andrew Austin’s interview:

Key Takeaways
  1. $300 million in net cash on the balance sheet. Could support a transaction of up to a $1bn.
  2. Hedged 3000 boepd at $69 barrel and 60% of gas production is hedged. This was done to cover capex requirements. Institutions do not like hedging – can do it themselves, frustrating for retail investors (I would prefer more hedging) but understandable.
  3. Dividends – will be discussed in the interims due shortly. Probably looking at something regular rather than special ones as have been done historically.
  4. Andrew does not want to a do a buyback and have himself breach 30% of shareholding.
  5. In four to five data rooms looking at potential acquisitions. Will consider opportunities which make sense, whether they’re $10 -$20 million or much larger.
  6. Marathon employees are highly skilled at decommissioning and can therefore estimate costs more accurately than many other teams.
  7. BP are happy to have a partner who are keen to invest in their projects – Marathon didn’t want to invest in their North Sea assets previously.
  8. The institutional investors who have made a “truck load of cash” should be getting towards the end of their share sales which has been holding the price down.

As a shareholder I’m very happy with what Andrew has said and look forward to the interims due shortly!

 

At the time of publication the author holds a long position in RRE.

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