GREY:AVNDF - Post by User
Comment by
TimeBuilderon Jan 16, 2013 9:55am
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Post# 20844235
RE: Bullish for the Merger
RE: Bullish for the Merger Copy...........FYI
Pace Oil (TSX: PCE) will be merged with two other smaller Canadian producers if the shareholders' approve the deal in February 2013. The new entity of 18,000 boepd will be both a growth machine and a dividend paying company with a hefty annual dividend of 36 cents that yields 10% annually. The completion of this deal will definitely attract a new category of income investors who seek for a steady monthly income coupled with a growth potential as the combined firm will have low rates of production decline and a prospective land of more than 700,000 net acres. The dividend looks sustainable long term as the payout ratio is very conservative and ranges at 35-45% of the operating cash flow.