And I wouldn't consider execs selling off 1% of their shares a fire sale. Its pretty common for execs at any company to do this at the end of the year when they receive their awards. Pick any symbol, look at the insider trades, and you'll see the same thing going on, regardless of company health.
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The SEC filings in December are for annual stock awards. They are public documents that anyone can go read and see how much the execs were given.
But look at the dates of acquisition, in 2014 and 2015 you see acquisitions in early December, probably something to do with compensation versus the individual investor's desire to invest in SWN.
@john_doe @FpqfzdZ-3pis you are a special kind of retard. Look at the number of buys v. sells. A lot more buying than selling.
Your CEO'S and executives have seemingly been busy printing themselves shares of SWN stock and quickly selling them off. Are they trying to milk the company for all its worth before it implodes from the debt placed upon it? http://www.nasdaq.com/symbol/swn/insider-trades
Where do we sign up to drink kool-aid and become a millionaire?
That was a formula that Harold Korrell came up when he was CEO of SWN. I have one of the original tee shirts, yes tee shirts because it hadn't become the "logo" of the company. He made his millions along with a select few other SWN managers and moved on with their high salaries and stock. Unfortunately one of the managers is still employed and in the Houston corporate office. Stupid then and stupid now. The original management that built that company before Korell sure were not millionaires when they were kicked to the curb with the exception of one that was the IT manager that made the move from Fayetteville to Houston. It's funny because when he was the IT manager in Fayetteville (interned in the mail room while attending the University of Arkansas) said he wasn't getting the SWN tattoo. My how his loyalty changed. He didn't get the tattoo but sure drank the kool aid to position himself to leave the company as a millionaire.
Way is a politician, not an industry expert.
PVI is present value index. According to SWN's annual report for every dollar invested they expect to generate $1.30 in value.
Can someone explain what 1.3 PVI is? What variables does this include?
I think these last few comments have really hit the nail on the head. Mostly everyone below the executive level was adhering to the formula and made decisions based upon the 1.3 PVI goal. This was Genious and kept SWN balanced and leveraged for soo many years. SWN would be looking like Champs right now had they just stuck to these principals put in place by past leadership. This really comes down to the classical "practice what you preach" where the executive team failed to adhere to the formula and 1.3 PVI which they had preached for many years.
I think Bill Way has what it takes to turn things around and I think SWN will still be here when the dust settles but it will look like a completely different company. From an outsiders perspective it looks like the walls are crumbling but I think on the inside SWN has some of the brightest talent doing the right things that will make up for their leaders follies. My portfolio will be ready for SWN 2.0 on the other side of this!
SWN management assumed the Canadians would open their arms and welcome them. It was as if they did not realize there are indigenous tribes that care about the land.
Less about this and more about how Canada handles royalties.
When I worked at SWN, I don't think they ever truly formula. Sure some people did. But the "top" of the organization did not. They began to fall astray (so I heard) when they moved HQ from Arkansas to Texas. I was not there for the move (I came after) but substantially everyone that moved eventually left the company. They complained that management told them on several occasions that the company was not moving to Texas...but they did anyway. This is likely going to happen again as the company will likely sell its Ark. assets to support a dangerous and costly endeavor further into the Marcellus. There was a lot of talent that was lost during the years after the move. Management is arrogant. They think they are smarter than the majors. This is NOT the case. A great example is Canada. Oh I remember when everyone was excited about going into Canada. Let's set aside the debate about whether recoverable gas is really up there in the frozen tundra. SWN management assumed the Canadians would open their arms and welcome them. It was as if they did not realize there are indigenous tribes that care about the land. Now Canada is a failed venture. The company wasted millions of dollars that they guaranteed the local government they would spend.
As a guiding principle the formula looks like it has merit. But SWN's decision to grow aggressively, vertically integrate traditional oilfield services, build commercial office space and acquire substantial debt seems contrary to the formula and the 1.3 PVI value goal often referred to by SWN. From the outside it looks like they lost sight of how the total of the sum of decisions made could result in an erosion of the formula and 1.3 PVI goal. This will be a difficult year for SWN and other companies like SWN. It looks like parts of the formula failed on different levels throughout the company. At some point these decisions were not resulting in 1.3 PVI.
It sure is
R squared = The Right People doing the Right Things
/A = wisely investing the cash flow from our underlying Assets
Arrow= to create
V+ = greater value
Is there a part of the formula you feel SWN is lacking...if so which part and why?
From their financial reporting over the last few years it appears this company strayed from their formula a long time ago.
They don't practice the formula anymore
Proper Rekt
REKT.
Doesn't many anything these days, its just for show, a pretty decoration.
Can someone explain to me what that red symbol thingy means? It is on the side of their building.
Can someone explain to me what that red symbol thingy means? It is on the side of their building.