AvenEx Energy Corp AVNDF

RE: RE: Merger may be only option.

[pwalk140]

The history on Provident:

It was a upstream trust company that later acquired midstream assets and management, a hybrid if you will. With this formula there would be a constant supply of cash flow regardless of the markets. If the markets were down the upstream business would unperform, as would every other, but the midstream business would flourish due to the frac spread, and vise versa when markets were up. Then the trust announcement came along forcing Provident to become a dividend paying entity. The problem with the "hybrid" structure of Provident was that is was just that, one of a kind, meaning that it got very little exposure by analysts. Analysts don't want to do extra work for a 1 off company so to get the exposure and value there was an initiative to separate the upstream business from the midstream business. Along comes Midnight and buys up Providents upstream assets and forms Pace, Tom and the team do not have the expertise of running a pure midstream corporation so they step down a year later once Doug Haughey was found.

Tom takes some time off and in March of last year starts Charger with the amalgamation of the 3 other companies and here were are almost a year later with the exact same story how Provident initially started back in 1993 with Founders Energy.

 

At least thats the short version.