This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shareholders Group Statement On The Conclusion Of Equal Energy Strategic Review

VANCOUVER, Nov. 29, 2012 /PRNewswire/ - In response to Equal Energy's November 27 th 2012 press release highlighting the conclusion of the strategic review, Mr. Nawar Alsaadi and Dr. Adam Goldstein, "Shareholders Group", jointly owning 4.93% of the company's outstanding shares, would like to make the following statement:

The Shareholders Group believes that the management and the special committee of the board of directors has failed in its primary review objective of closing the significant gap between the value of the shares and that of the company's underlying assets. As a matter of fact, as a result of the asset dispositions undertaken during the review process this valuation gap has further widened.

Thus in light of the company failure to achieve its stated review objective, the Shareholders Group recommends the following:
  • The immediate halt of the company's pursuit of accretive acquisitions and focusing instead on returning value to shareholders.
  • The initiation of a substantial Dutch auction tender offer at a price range of $3.5 to $4.5; such a tender would significantly enhance the net asset value per share for current shareholders, while providing a liquidity event for selling shareholders.
  • Materially increasing the amount of the announced annual dividend.
  • The introduction of shareholder representatives on the board of directors.
  • The resumption of the strategic review process to further explore alternatives to enhance shareholder value.

Equal Energy continues to be significantly undervalued. A simple inspection of the company's approved credit lines of $125m reflects a minimum enterprise value of $250m solely for the company's PDP reserves through applying the banks customary 50% discount to the value of such assets, which corresponds to a stock price of $6.49/share vs. the current stock price of $3.24

We believe the above steps will be instrumental in re-establishing shareholder confidence in Equal Energy and closing the substantial valuation gap between the company's underlying assets and its market price. Failure to undertake the above recommendations would entail further action on our part to safeguard and protect shareholder value.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs