These extracts are from a recent interview with LNR CEO Frank Bracken III.
The complete interview can be found at www.ogfj.com
Just enter "lonestar Resources" in the search box
OGFJ: Talk to us about your recent listing and any related plans for a capital raise.
Bracken: On June 2, our OTCQX listing became effective. For us, it's really straightforward: our fiduciary duty to our equity holder is to create the broadest possible market for our shares. It just made sense to us that we linked our share price to the US market because that's where the bulk of our peer companies trade. As of this interview, we're only in day six of trading, but the results have been humbling. I think our stock is up 50% since the listing took hold. With the listing there's now the potential to raise money in both the US and Australia. Right now we just completed a $220 million senior unsecured note deal with Jefferies and Wells Fargo in the states. That transaction has given us an undrawn line of credit that totals $109 million. We feel like we've got all the capital we need right now.
OGFJ: Finally, what might Lonestar look like in 5 years?
Bracken: Our primary mission is to build an asset of consequence in the Eagle Ford. In my view, optimally, there would be a 40,000-50,000 acre position. We think the well results and the M&A activity that has been perpetually reemphasized through improvements in well quality and the constant purchase by non-Eagle Ford operators of Eagle Ford assets or Eagle Ford companies is a validator to our philosophy. I think our goal is to build an asset of consequence so that at some point in time, someone who has a different sense of value comes along and takes the company out. We're in this to make money for our shareholders; I'm not out to build the next Exxon. We'll prosecute the strategy as long as it's accretive to our equity holders. If somebody comes along that decides we're worth more to them than we are to the stock market, then we'll sell, but I see our development cycle taking 3 to 4 years before the company would ultimately be monetized.
OGFJ: Thank you very much for your time.
Well there's a plan in place.
I hold
The complete interview can be found at www.ogfj.com
Just enter "lonestar Resources" in the search box
OGFJ: Talk to us about your recent listing and any related plans for a capital raise.
Bracken: On June 2, our OTCQX listing became effective. For us, it's really straightforward: our fiduciary duty to our equity holder is to create the broadest possible market for our shares. It just made sense to us that we linked our share price to the US market because that's where the bulk of our peer companies trade. As of this interview, we're only in day six of trading, but the results have been humbling. I think our stock is up 50% since the listing took hold. With the listing there's now the potential to raise money in both the US and Australia. Right now we just completed a $220 million senior unsecured note deal with Jefferies and Wells Fargo in the states. That transaction has given us an undrawn line of credit that totals $109 million. We feel like we've got all the capital we need right now.
OGFJ: Finally, what might Lonestar look like in 5 years?
Bracken: Our primary mission is to build an asset of consequence in the Eagle Ford. In my view, optimally, there would be a 40,000-50,000 acre position. We think the well results and the M&A activity that has been perpetually reemphasized through improvements in well quality and the constant purchase by non-Eagle Ford operators of Eagle Ford assets or Eagle Ford companies is a validator to our philosophy. I think our goal is to build an asset of consequence so that at some point in time, someone who has a different sense of value comes along and takes the company out. We're in this to make money for our shareholders; I'm not out to build the next Exxon. We'll prosecute the strategy as long as it's accretive to our equity holders. If somebody comes along that decides we're worth more to them than we are to the stock market, then we'll sell, but I see our development cycle taking 3 to 4 years before the company would ultimately be monetized.
OGFJ: Thank you very much for your time.
Well there's a plan in place.
I hold
DCE) Niobrara/Utica 12.72
