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Bullboard - Stock Discussion Forum Saturn Oil & Gas Inc. OILSF


Primary Symbol: T.SOIL Alternate Symbol(s):  T.SOIL.R | T.SOIL.W.A

Saturn Oil & Gas Inc. is a Canada-based energy company. The Company’s focus is to advance the exploration and development of its oil and gas properties in Alberta and Saskatchewan. It has assembled a portfolio of assets in Southeastern Saskatchewan, West Central Saskatchewan and Central/Northern Alberta that provide an inventory of economic drilling opportunities across multiple zones. The... see more

TSX:SOIL - Post Discussion

Saturn Oil & Gas Inc. > Globe & Mail Quick Summary
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Post by retiredcf on Jan 23, 2023 10:31am

Globe & Mail Quick Summary

It wouldn't be a suprise that when trading resumes, the SP initially declines as this often happens to the purchaser when one smallcap buys another. But long term, it looks promising. GLTA

09:14 AM EST, 01/23/2023 (MT Newswires) -- Saturn Oil & Gas Inc. (SOIL.V) said over the weekend that it agreed to acquire Ridgeback Resources Inc., an oil and gas producer focused on light oil in Saskatchewan and Alberta, in a $525 million deal.

Consideration comprises $475 million in cash and $50 million in shares. Closing is expected in the first quarter.

The transaction allows Saturn to acquire additional production of 17,000 barrels of oil equivalent per day. Upon closing, the company said it will focus on maximizing free cash flow from pro forma production base of about 30,000 boe/d.

"The attractive acquisition metrics and compelling economics of the Ridgeback acquisition, paired up with our existing portfolio of free cash flow generating assets, will allow Saturn to repay all corporate indebtedness within three years, and ultimately provide a significant return of capital to enhance shareholder value," Saturn CEO John Jeffrey said.

Saturn expects to generate $232 million in free cash flow to reduce net debt to $345 million at year-end 2023.

Following the acquisition, Saturn updated its 2023 guidance, with its pro forma stay flat guidance increasing 117% to 27,170 boe/d.

Comment by downtozero on Jan 23, 2023 10:49am
Selling $125M of certificates at $2.11 will certainly drive the share price down for a while. We will probably see a much lower price for at least 6 months until the purchase starts proving itself over a couple of quarterly reports. Lets hope oil price staus up over $80!
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