August Presentation | AXAS Message Board Posts

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Msg  10518 of 10689  at  9/10/2019 11:13:56 AM  by


 In response to msg 10517 by  delt1970
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Re: August Presentation

I've been looking at the objections from the hedge fund to Callon's offer for Carrizo and noted the comment from an M&A Advisor.

"However, Callonís holdings in the Permian shale basin do not have a natural fit with bigger shale producers, said Andrew Dittmar, an M&A analyst at data provider Enverus."

Callon has a position in Ward County offsetting a bit of the AXAS position. Slide 9 in our August deck is the map depicting AXAS and its neighbors. If Dittmar is correct in his assessment of Callon's position, does AXAS have any natural buyers beyond Felix or JAG that would pay a meaningful premium? I've thought the leases in this neighborhood of Halcon, AXAS, Felix, JAG, and OAS needed to be combined and now you might add in CPE. A big roll up might be attractive to Exxon or Devon.

Felix seems to be in the drivers seat if there is any hope for AXAS in the short run. I have seen nothing written of the progress of the bankruptcy court dealing with Halcon.

When you look at Slide 11 you see how Watson has added to this lease position in Ward County. A couple of years ago he said he wanted to reduce the debt to something approaching one times EBITDA. Instead, he increased the debt to expand the land position and has backed us into a repudiation from the Street in the stock price. He and his captive board want to be validated in their actions with a juicy offer from a buyer. It ain't happening and the stock has been taken to the woodshed.

Billy Bailey rightly protests and has apparently been stonewalled. Watson isn't going to retire, the board isn't going to fire him because of their stupid action to insulate and lock him in and here we sit. We're too small, too expensive an operator and totally stuck. Our previous CFO had the right idea.

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Msg # Subject Author Recs Date Posted
10519 Re: August Presentation Allentownjeff 0 9/12/2019 7:53:47 AM

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