I am simply astonished by the choice of the Board of Directors of MEG Energy.
Derek Evans served as CEO of Pengrowth Energy from May 2009 until March 2018.
I extracted a weekly view of the stock price of Pengrowth from the time he became CEO of the company.
Source: TMX Money
Shareholders never recovered.
MEG is still touting the prowess of Evans to streamline Pengrowth…
During his tenure, Mr. Evans streamlined the Company’s asset base from 35 properties to two growth assets, with over $9 billion of development opportunities.
Evans did streamline the company. Although he streamlined Pengrowth from the many properties he himself acquired with debt.
To me this choice doesn’t make any sense at all. The market is also in disbelief as the stock fell 8% today.
The company has a great asset and egress out of Western Canada. It only needs a good leader shareholders can trust. It’s not the case currently. Really it’s more of the same.
I sold half of my position in MEG and I bought back Gear Energy. I am not cashing out my entire position only because I want to know what Highfields Capital Management will do. Highfields asked the Alberta Securities Commission permission to contact MEG shareholders directly.
The Filer wishes to communicate with the holders of Shares (the Shareholders) in advance of the Meeting to solicit such Shareholders’ proxies in respect of the business to be transacted at the Meeting. The Filer may wish to conduct the solicitations by public broadcast, speech or publication (the Public Solicitation) without sending a dissident’s proxy circular to each of the Shareholders.
Highfields previously had a board seat. Daniel Farb resigned on July 24.
Disclosure: I am long MEG, GXE. Not for republication on Seeking Alpha.