GREY:DPGYF - Post by User
Comment by
jerrybeon Jun 05, 2015 11:21am
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Post# 23800726
RE:RE:sale
RE:RE:saleI am having a hard time figuring out whether the metrics of the deal were good or not. I think the Wapiti assets were decent. They had not invested in them for a while but they owned some of the midstream solution so again, it was a decent asset and that's why they could get $50M. The buyer will probably be able to ramp up production quite easily with some capex put in it. But that is not DEE's problem anymore.
How I see it, any debt reduction that does not involve a massive fire sale or shareholder dilution is a big plus in this environment. And this is what the company managed to achieve today, hence the stock price jump. Kudos to management for managing a decent asset sale in this negative environment.
On the Montney front, nothing new. They are in complete "turtle" mode, which is appropriate given the low returns obtained on any investment at these prices. They will be ready to rebound when prices improve (whenever that might occur...) and until then, they bought themselves a bit more breathing room. Still holding until we see better days.