Tuesday, May 8, 2007

The CEO

The phone rings yesterday afternoon and it is Mr. Rudolf, the CEO and President from the Biloxi Marshlands Company (BLMC). Apparently someone had forwarded my blog post to him and he felt there were some misinterpretations on my part based on the reading of the press release from the first quarter earnings release. I didn't ask him who sent him the blog since I figured he would keep it confidential.

I made three points in my post. I will put the company's clarifications in italics.

1) Production was down year over year, and the reason given did not on the surface make sense.

BLMC reported the daily production as of the last day of the quarter, it is not an average daily production.

This explains why the reason given (well shut ins) did not make sense. I should have read the press release more carefully.

2) Delay in the start of the drilling package, and no explanation is given.

Manti was delayed drilling a previous well somewhere else and couldn't start the BLMC package on time.

This is believable as delays in drilling occur all the time.


3) The dividend was omitted this quarter.

The company has no set dividend policy according to Mr. Rudolf, so technically no dividend could be "omitted." The company decided that they would retain the earnings this quarter instead.

I'll let the market judge number 3.

I can tell by speaking to Mr. Rudolf that he has a great passion for the company, and I can't imagine BLMC being in better hands than a descendant of some of the original shareholders from the 1920's, and whose family still owns 8% of the stock.

3 comments:

Ed said...
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Eric J. Fox said...

Ok, what's your e-mail address? Your profile is private.

Ed said...
This comment has been removed by the author.