MMT.v / MAUXF Well the majors are cutting costs and leaving Nigeria terra firma. If they're getting out do you really want to be the high bidder on their asset sales?
Maybe, maybe not.
See my prior post on Mart. They're rumored to have been high bidder on Shell's OML 18 block. Will they have to cut their dividend more? How long will it take to close (some sales are taking over a year to gain final approval)?
As I stated in my prior Mart post I wish they would've passed this up and focused on poking as many holes in the UMU field as possible and getting that sweet light flowing down their brand new pipeline (that probably already has a few holes poked in it). They could have maintained their dividend and jacked it up even more while still putting more cash in their pockets for a potential acquisition down the line.
This whole business with Shell has introduced a fair amount of uncertainty IMO. With the dividend yield cut there is less incentive for people to hold the stock so I think folks are moving on.
We had a stock paying out 12-14% with a near-term catalyst that would significantly increase their production and cashflow while they also have room to run on proving additional reserves. Aside from Nigeria and pipeline losses I'm not sure the story could've gotten better. Then Shell asset purchase happened....
That's my .02
I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations.
James Madison
