Return of Capital

[ltinvest]

I have been doing a number of calculations based on different scenarios.  In another thread, I agreed with many posts while suggesting an "AND" strategy needs to be developed.  Meaning, exploration and monetization of current and future resources needs to continue at as rapid a pace as is feasible.  AND the rampant manipulation of the pps needs to be curbed as much as possible.  It is the fiduciary responsibility of management and the board to consider all possible options.

While others have proposed a takeover or going private transaction, I believe return of capital needs to be utilized.  I suggest a 33% return of capital of the $612 million payable at closing in the form of a special dividend.  Additionally, I suggest 33% of interim resource payment (approx $3.3 billion total based on GLJ best case) be used for a share buyback program.

IOC would still have sufficient capital for exploration and their non financed share of the CSP & LNG plants.

It's time to use a "bazooka" to unlock the enormous value of this company.

[jft310]

I have been doing a number of calculations based on different scenarios.  In another thread, I agreed with many posts while suggesting an "AND" strategy needs to be developed.  Meaning, exploration and monetization of current and future resources needs to continue at as rapid a pace as is feasible.  AND the rampant manipulation of the pps needs to be curbed as much as possible.  It is the fiduciary responsibility of management and the board to consider all possible options.

While others have proposed a takeover or going private transaction, I believe return of capital needs to be utilized.  I suggest a 33% return of capital of the $612 million payable at closing in the form of a special dividend.  Additionally, I suggest 33% of interim resource payment (approx $3.3 billion total based on GLJ best case) be used for a share buyback program.

IOC would still have sufficient capital for exploration and their non financed share of the CSP & LNG plants.

It's time to use a "bazooka" to unlock the enormous value of this company.

may I suggest you email MH and CV your idea

[ltinvest]

JFT, that is my plan.

[sfiaes]

I disagree.

Now is not the time to start forcing managements hand and asking for your money back.

The company is in as good a shape as it has ever been to create shareholder value.

You want to give this management capital. This is the beginning of a virtuous circle, wherein they find gas for $.20 and mcf and monetize it for $1.50 plus.

The sell off was disheartening, but pretend you just stumbled upon the story today, leave the old baggage behind. It's a buy.

[Movieguy]

Sfiaes, if the fundamentals can be ignored in the pps, it doesn't matter how good the fundamentals become. We have great fundamentals now, and a pps in the dumpster. Management HAS to do something about this directly. I fully support ltinvest proposing his ideas to management, and I suggest we here at SHU support it in any ways we can.

[ltinvest]

I'm using round numbers here. Special Dividend would = $4/share.

Based on 50 M shares outstanding and $75 secondary share price as well as GLJ certification, $1B available for share buy-back which would repurchase over 25% of outstanding shares. (variables will change and actual numbers will fluctuate but it is to illustrate my point)

Now run NPV of future cash flows from 30% in CSP and LNG.....not to mention future exploration discovery.

[ltinvest]

Thanks Movieguy. sfias, I wholeheartadly agree with your comments on fundamentals. My proposal does not deprive management of cash. Quite the contrary. Based on the Q1'14 payment and interim resource payment in 2015 for GLJ best case certification, management still has approximately 2.75 BILLION to invest accordingly. Furthermore, this does not include any "bonus" for new discover in PRL 15 outside E/A or the resource payment due at FID. Again, I don't believe this to be "either/or"....."AND" is the solution here.

[tarulestheday]

While others have proposed a takeover or going private transaction, I believe return of capital needs to be utilized.  I suggest a 33% return of capital of the $612 million payable at closing in the form of a special dividend.  Additionally, I suggest 33% of interim resource payment (approx $3.3 billion total based on GLJ best case) be used for a share buyback program.

IOC would still have sufficient capital for exploration and their non financed share of the CSP & LNG plants.

It's time to use a "bazooka" to unlock the enormous value of this company.

If everyone on this board called or emailed WA and stated that they were behind this proposal, you would be shocked how much influence it might have. Any kind of divi will force the location of all shares. If the company does not implement some similar strategy I will be calling my positions out with calls over the next few months. I'm not willing to wait through 5-7 years of continued manipulation to achieve reasonable valuation.

[calaban48]

I endorse Itinvest's "bazooka" deployment and have messaged the company to that effect.

[tarulestheday]

I endorse Itinvest's "bazooka" deployment and have messaged the company to that effect.

Ditto as I emailed WA and asked him to forward to Dr. Mike. I hope this thread does not get buried here as I'm sure many of the longs oppose this idea and have no issue with IOC trading in the $40s.