OTCPK:ARNBF - Post by User
Post by
rockman998on Dec 03, 2012 10:16pm
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Post# 20678354
Take over
Take over There was an analyst on BNN tonite discussing CPG and how they are leveraging their low cost of capital for acquisitions. Their production is valued by the market capitalization at $140k per flowing barrel and they are presently buying companies in the $ 70,000 / flowing barrel range. I thought they were paying a little more than that. However, at $ 70,000 / flowing barrel they wouldn't cover the $ 350m debt of ARN.
Petrobaken recently increased their capex for the 4th quarter and their original cash flow projections for the year are going fall short of their original guidance by $200m. If they were to consider a take over of ARN at the present price of ARN plus debt, they would need approx. $ 475m. I think they will need to arrange for additional credit lines. The additional credit line I think is possible but I doubt they would want to be stretched to buy the over priced ARN infrastructure assets.