Any thoughts?
8 replies (most recent on top)
VERY WELL. SAID!!!
Besides a CEO, who does not know what he is doing, they also have a very young and inexperienced staff. Poorly mentored over time, promoted before they are ready and being allowed to do their own thing, is a recipe for failure. SWN was a great company under Korrell, but as soon as he brought in Mueller it changed for the worse. I often wonder how Harold sleeps at night, knowing he let an alumni buddy destroy the company he helped resurrect. Oh well, Harold's net worth has declined significantly with his horrible choice of his replacement. He allowed crooks to become leadership at SWN, and, therefore destroying the credibility of the company. Much like the Hale lawsuit ruined SWN's credibility in the late 90's.
My opinion? This is really stupid.
The debt should not be a problem to redo. We can add other assets like PA and WV to secure it. The real problem is our goal to only drill within our cash flow. That leaves no activity in Fayetteville in 2018 and slow down in other places. Economics are questionable at these prices in any of our assets and slowing down definitely takes away grow and gets us into or close to decline again.
My BIG concern $4.4 billiin debt and repeated discussion by SWN reps hope (and pray) can renegotiate term loan due in full in 2020 but footnote in SEC filings says may come due in 2019. Secured by Fayetteville and probably Moorefield which has structural and fault complexities and water issues. Also confused about 12,000' lateral. Also noticed Way rambled, confusing and did not answer questions
Way definitely hard to understand and makes me think he is hiding things with his answers. His answers are long and don't answer the question. Smoke and mirrors! I thought it was interesting that he spent so much time talking about gas macro supply and demand at the start of the call. If that is not a signal of "I don't have a plan and am hoping gas price moves up, then I am not sure what is."
Lost a lot of money on hedges. Costs up across the board.
No guidance discussion on the call. I don't believe that our 2018 numbers are really achievable. When does that become apparent?
Was just reading transcript from conference with analysts. No mention of layoffs or backwardated gas curve or layoffs. What are everyone's Take Aways from transcript for cashflow and layoffs AND GUIDANCE??? TRY TO Simply and extend debt (due 2020 but could be due 2019) secured by Fayetteville which is declining 17% (ouch!!!), Moorefield wet well concerned analysts with repeated emphasis for drilling 3 BIG AREAS-- limited by cash flow with no mention on guidance, no non-core assets to sale with no exploration going on, wiggly around gas price weakness and pipeline and differential issues, why hire EVP and not a CFO, Bill Ways answers hard to follow and not concise.
Further layoffs would more likely take place in Dec.