Came to the same conclusion. I suspect holders were looking for something more concrete than "significant," but that will sort itself out soon enough.
It's an okay, not great price, but it basically resets the company with more liquidity and a new narrative, after they'd hamstrung themselves with commitment to a high payout that the market gave limited credit for (for the reasons you outline above). Now they have scale and can grow, for good or ill.
I think this is moderately good news priced as bad news.
I'm trying to square the fact that the P/E is 33x yet it offers a 13% dividend yield on reported numbers. In a run-off mode, will operators be able to continue production at the current rate for another 10 years? Or why do accountants want to amortise the assets faster, which I presume it's what's happening with earnings?
Came to the same conclusion. I suspect holders were looking for something more concrete than "significant," but that will sort itself out soon enough.
It's an okay, not great price, but it basically resets the company with more liquidity and a new narrative, after they'd hamstrung themselves with commitment to a high payout that the market gave limited credit for (for the reasons you outline above). Now they have scale and can grow, for good or ill.
I think this is moderately good news priced as bad news.
I'm trying to square the fact that the P/E is 33x yet it offers a 13% dividend yield on reported numbers. In a run-off mode, will operators be able to continue production at the current rate for another 10 years? Or why do accountants want to amortise the assets faster, which I presume it's what's happening with earnings?