I think now might be a good time to retire the formula . . . maybe a re-branding of some kind. Assets weren't invested wisely, it appears that 50% of the people weren't right, and the value of the organization seems questionable.
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I left almost five years ago and am glad I did it when I did. When Murller took over and the only growth strategy was "to find another Fayetteville" I sensed there would not be a light at the end of the tunnel. I was lucky to get rid of my stock at $42 as well. Striking out on the Brown Dense which everyone else knew was too difficult and costly was the first big mistake followed by New Brunswick and then being late to the game in the Bakken and elsewhere, topped off by the WV fiasco. It's truly a shame they have lost a lot of experienced operations folks to solely focus cash flow on servicing debt. The loss of activity and jobs in Arkansas is especially devastating to the hard working people SWN had there as well as all of the supporting businesses and the overall community.
It was said to me at the time Mueller replaced Richard Lane by a 35+ yr drilling engineer (who got caught up in this layoff coincidentally) "Have you noticed all of the companies he worked at don't exist anymore?" Somewhat prophetic.....
The formula is a joke. Doesn't mean a darn thing. Why does the man who caused all of this get all of his stock, bonus, etc. vested, when the 1100 people who got laid off have to wait 4 years for total vesting? The 1100 should get their stock vested immediately, while there is still some value. In 4 years, who knows? Come on HR, do the "right thing" and let the1100 vest immediately. They are going to need it immediately, whereas, Mueller has already amassed a fortune doing the wrong thing. HR, be the "right people" and do the "right thing". Prove the formula means something and not just an equation with no "equals" sign.
The formula, investments and vertical integration were wrong along with the VPs, SVPs, General Managers, Directors and the BOD. Total fail. More than likely some of the 50% let go needed to go, and some of the 50% remaining are not top performers but rather top of the class kissing ass. From what I have gathered they still have a lot of bad management at the top and middle. Looking forward to the financials and the "spin," their formula won't save them this time because it isn't a sincere value of the company. If it had been then they would have exercised more due diligence and discipline in their acquisition strategy. Foolish gamblers have lost investor trust.