RE:Not a fan of the Ranger AcquisitionI will admit I was not a fan of the Ranger Acquisition. I was more in tune with Jeremy McCrea’s analysis. I was fearful because I was holding a lot of BTE before the announcement. I had a feeling the stock would not react well. But I prepared for the storm by buying more. Now I own an irresponsible amount of BTE (just like Eric).
What you missed is that oil is remaining high and unless we get a recession (the recession everyone has been calling for over a year – LOL!), oil E&P is cash flow machine – what other sector do governments call for windfall taxes?
I maintain the Ranger Acquisition was more a merger than Acquisition. Juniper bought over 50% of Ranger when the price was low, levered up Ranger, and looked to monetize Ranger. (Juniper owned an irresponsible amount of Ranger). If Juniper sold their stock on the market, the share price of Ranger would tank. Juniper found BTE who was a willing participant due to low inventory. BTE will benefit from increased inventory and high oil prices. A win-win situation.