Between rising dollar and recession chatter...

Between rising dollar and recession chatter...

Postby DSG » Fri Sep 23, 2022 2:19 pm

Bought some SBOW yesterday thinking 'boy this is a dip not to be missed!' It's sunk 12% since. Maybe I get some money back once it finally goes negative and people start paying me to take shares off their hands.
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Re: Between rising dollar and recession chatter...

Postby dan_s » Fri Sep 23, 2022 2:37 pm

Hang tough. SBOW is going to report strong Q3 results with a big increase in production. The small-caps have relatively low number of shares outstanding, so one big seller can have a significant impact on the share price.
Dan Steffens
Energy Prospectus Group
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Joined: Fri Apr 23, 2010 8:22 am

Re: Between rising dollar and recession chatter...

Postby DSG » Sat Sep 24, 2022 8:39 am

Oh, no worries, I'm plenty optimistic about it. Nobody's going to be switching on half a dozen secret fusion reactors in the next six weeks. Just the usual lamentations over buying it here instead of buying it there and being able to grab that much more of it.
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Postby farrell90 » Sat Sep 24, 2022 11:41 am

Kimmeridge Energy Management Company, LLC was the SBOW suitor. It is a Manhattan based private equity group which invests in special situations by acquiring and managing energy stocks.

From the Kimmeridge web site:

"Our flagship strategy focuses on unconventional US oil and gas assets at the front end of the cost curve. We are relentless in our focus on asset quality, but flexible in our investment structure."

"Our carbon solutions strategy was developed to accelerate the energy transition to net zero. We are focused on investments at the front end of the carbon cost curve that leverage our direct operations and land aggregation expertise to reduce and offset emissions."

Kimmeridge was described by Hartenergy publication:

"...Kimmeridge is an energy private equity firm focused on making direct investments in unconventional oil and gas assets in the U.S. Rather than partner with separate management teams, Kimmeridge identifies, owns and operates each of its assets directly, maintaining an in-house geology and operating team with experience across all major E&P functions."

On 9/20/2022 Kimberbridge filed a 13D reporting it acquired 14.7% of SBOW. On Sept/20 SBOW closed at almost $32. The low yesterday was 24.53 and closed at 25.10 giving it a PE 5.52 and EPS of $4.89.SBOW high of the year was in late August at about 45.50

Also on 9/20/2022 SBOW responded by announcing a "rights plan" as described in a PR and 8K.

How SBOW trades from here is anybody guess,but the company looks very solid going into a period of extremely high demand for natural gas in the US,Europe and Asia.

My opinion is shareholders will be better served by the current management and it still is an attractive candidate for a takeover by the right company.

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