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:
- $300 million in net cash on the balance sheet. Could support a transaction of up to a $1bn.
- 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.
- Dividends – will be discussed in the interims due shortly. Probably looking at something regular rather than special ones as have been done historically.
- Andrew does not want to a do a buyback and have himself breach 30% of shareholding.
- 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.
- Marathon employees are highly skilled at decommissioning and can therefore estimate costs more accurately than many other teams.
- 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.
- 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.