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The sudden retirement of InterOil (IOC) CEO Phil Mulacek should speed the securing of a major JV...

The sudden retirement of InterOil (IOC) CEO Phil Mulacek should speed the securing of a major JV partner for its Gulf LNG project in Papua New Guinea, Raymond James analyst Pavel Molchanov says. Mulacek was a "sharply polarizing figure" perceived as "an obstacle" to a deal with interested partners such as XOM, RDS.A or TOT, and his departure provides a catalyst for an announcement.
Comments (5)
  • James Emerson, CFA
    , contributor
    Comments (250) | Send Message
     
    I have a different read. His resignation provides him cover to liquidate his position. Since he will no longer be an insider he no longer has to report his transactions.

     

    I also find it odd that he is leaving before a deal is signed. I would have expected him to resign upon announcement of a deal if he were the impediment.
    24 Apr 2013, 12:00 PM Reply Like
  • SLG123123
    , contributor
    Comment (1) | Send Message
     
    You don't just become free to trade your control stock the day you resign from a public company.
    25 Apr 2013, 01:35 AM Reply Like
  • Adam Gefvert, CFA
    , contributor
    Comments (1434) | Send Message
     
    Doesn't he still have to report his share count as a director?

     

    I agree with the fact that he resigned shows that there was no deal after all. All those articles and analyst comments saying that a deal is in the works was all BS. So the stock should retrace to where it was before those articles were written, ie the high $60s. It's wrong for the stock to be up at this point IMO.
    24 Apr 2013, 12:25 PM Reply Like
  • SafisKusai
    , contributor
    Comments (236) | Send Message
     
    actually the original announcement states that while hes stepping down as CEO he will still be a director and adviser at the company, so that still makes him an insider and unable to sell his shares without people knowing.
    24 Apr 2013, 12:47 PM Reply Like
  • Stavros
    , contributor
    Comments (18) | Send Message
     
    Adam:

     

    I believe you're correct that there is no deal yet.

     

    However, you just don't understand the specific dynamics of InterOil or the LNG business in general. A deal is definitely in the works.

     

    Huge companies with commensurate corporate coffers are buying LNG, and need it for many decades to come.

     

    Ditto for companies that want to provide the LNG to them.

     

    They're all lined up to take a piece of the InterOil Elk/ Antelope project at the lowest possible price they can get.

     

    By waiting these extra few years, InterOil (ie Phil Mulacek) has ensured that the line is longer than ever and they're fighting each other to be selected.

     

    Do you really think that Raymond James (Pavel Molchanov), Morgan Stanley (Evan Calio) and Westlake (Chris McDougall CFA - - - yes, he's a CFA) are all wrong when they say IOC is undervalued at $80 per share?

     

    I personally think they are right and you are totally wrong in saying that IOC should be in the high $60's per share.

     

    I'm looking for $150 + by mid-June; ramping up daily from now on as shorts cover their bad bets.

     

    We'll know by the end of May I supppose.
    25 Apr 2013, 01:07 AM Reply Like
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