{"id":326673,"date":"2024-07-31T14:49:02","date_gmt":"2024-07-31T19:49:02","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=326673"},"modified":"2024-07-31T14:49:02","modified_gmt":"2024-07-31T19:49:02","slug":"caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/","title":{"rendered":"Caesars CEO Reeg Says No Involvement with Penn, Eyes Buybacks"},"content":{"rendered":"

Caesars Entertainment (NASDAQ: CZR) CEO Tom Reeg told analysts the company isn\u2019t \u201ceven tangentially involved\u201d in the takeover scuttlebutt that\u2019s recently surrounded rival Penn Entertainment (NASDAQ: PENN).<\/p>\n

\"caesars\"
Caesars CEO Tom Reeg in a 2021 CNBC<\/em> interview. He said the company is not interested in Penn Entertainment and doesn’t want to use its currently depressed stock to fund acquisitions. (Image: CNBC<\/em>)<\/figcaption><\/figure>\n

Reeg made the comments Tuesday evening on his company\u2019s second-quarter earnings conference. In response to a question from Wells Fargo analyst Daniel Politzer, the Caesars chief executive officer noted that while predecessor firm Eldorado Resorts frequently used equity for acquisitions that fueled growth, he\u2019s not inclined to look at the option today because Caesars stock has struggled<\/a>.<\/p>\n

I’m not an issuer of stock at $36 wherever it was today (Tuesday). We’re going to be a significant even more significant free cash flow producer as these as the project spend runs down,\u201d said Reeg.<\/p><\/blockquote>\n

At this writing, shares of Caesars are up 13% today, but the stock is down 30% over the past year, making it one of the worst-performing gaming names over that period.<\/p>\n

Reeg Not Going to Give Away Caesars Stock<\/h2>\n

Speculation about Penn being a takeover target dates back to late when one of its investors suggest the company should consider a sale. Subsequent rumors to that effect have centered around Boyd Gaming <\/a>\u00a0(NYSE: BYD) potentially making a move on Penn, but neither regional casino operator has commented to that effect.<\/p>\n

\n

With Caesars already having exposure to many of the markets in which Penn operates and the former focusing on reduce, Reeg is likely shooting straight when it comes to his company having no involvement in the purported Penn sweepstakes. He\u2019s also adamant that he\u2019s \u201cnot going to give our stock away.\u201d Rather, he\u2019s focusing on ways to eventually return capital to shareholders when capital spending on new projects falls off the operator\u2019s to-do list.<\/p>\n<\/div>\n

\u201cSo that will open up a leg of shareholder returns so you should expect us to start buying in some of our stock. If the stock moves to a different neighborhood that can change,\u201d Reeg said.<\/strong><\/p>\n

As more casino operators have initiated and increased quarterly dividends<\/a> and boosted share repurchase, Caesars has done neither as it\u2019s worked on trimming one of the largest debt burdens in the industry and opening new regional casinos in Nebraska and Virginia.<\/p>\n

Lower CapEx, Interest Rates Could Help Caesars<\/h2>\n

Caesars\u2019 shareholder rewards efforts could be boosted by a reduction in capital expenditures and interest rates, the latter of which could arrive as soon as September.<\/p>\n

\u201cA significant portion of CZR’s project capex rolls off this year, Digital earnings before interest, taxes, depreciation, and amortization (EBITDA) should accelerate, and potential non-core asset sales (we believe, the Promenade) come closer to fruition,\u201d wrote B. Riley analyst David Bain in a note to clients today. \u201cGiven a more benign interest rate environment \u2014 we calculate $60 million of interest savings\/new FCF for every 100 basis point drop drop in rates \u2014 we believe CZR’s shares can sustain upward momentum from current valuation levels.\u201d<\/strong><\/p>\n

Reeg previously expressed a willingness to sell \u201cnon-core\u201d casinos, a view he reiterated on Tuesday\u2019s call.<\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars Entertainment (NASDAQ: CZR) CEO Tom Reeg told analysts the company isn\u2019t \u201ceven tangentially involved\u201d in the takeover scuttlebutt that\u2019s recently surrounded rival Penn Entertainment (NASDAQ: PENN). Reeg made the comments Tuesday evening on his company\u2019s second-quarter earnings conference. In response to a question from Wells Fargo analyst Daniel Politzer, the Caesars chief executive officer […]<\/p>\n","protected":false},"author":46,"featured_media":220256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,1],"tags":[81903,81966,81967],"acf":[],"yoast_head":"\nCaesars CEO Reeg Has No Interest In Penn, Eyes Buybacks<\/title>\n<meta name=\"description\" content=\"Caesars CEO Reeg Says No Involvement with Penn, Looks Toward Buybacks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars CEO Reeg Has No Interest In Penn, Eyes Buybacks\" \/>\n<meta property=\"og:description\" content=\"Caesars CEO Reeg Says No Involvement with Penn, Looks Toward Buybacks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-31T19:49:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1910\" \/>\n\t<meta property=\"og:image:height\" content=\"1074\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/\",\"name\":\"Caesars CEO Reeg Has No Interest In Penn, Eyes Buybacks\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\",\"datePublished\":\"2024-07-31T19:49:02+00:00\",\"dateModified\":\"2024-07-31T19:49:02+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars CEO Reeg Says No Involvement with Penn, Looks Toward Buybacks.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ceo-reeg-has-no-interest-in-penn-eyes-buybacks\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\",\"width\":1910,\"height\":1074,\"caption\":\"Caesars CEO Tom Reeg in a 2021 CNBC interview. 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