Cardinal Energy Ltd (Alberta) T.CJ

Headwater Exploration Inc.

[Kherson]

Headwater released their 3rd Quarter results on November 3rd. The following quotes along with the recent unusal trading activity has me thinking that we are gonna be involved in a merger...

• As at September 30, 2022, Headwater had adjusted working capital (1) of $118.0 million, working capital of $113.4 million and no outstanding bank debt.
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Credit Facility

Headwater has executed a commitment letter for a credit facility in the amount of $100 million with a senior lender. With the 2023 guidance as outlined, Headwater does not intend to draw on the credit facility.

Kherson

[TheWokeLemming]

So is Cardinal the buyer or vice versa?

[JohnnyDoe]

  Hwx is the larger company by market cap. I don't really see CJ being bought or buying, certainly not buying a larger company like hwx. CJ is a small company, 20k production, doesn't have big footholds in the stronger developing plays. It doesn't offer much to a company like hwx. Additional cash flow maybe but all that cash flow would do is go towards the debt taken on to

[Re1ndeer2]

What is or are the advantages of a Merger?

[BigJake]

As JD pointed out this is extremely unlikely. HWX has never indicated it wants to be anything but a pure play clearwater producer

[Kherson]

I posted about a week ago my belief that Headwater is interested in acquiring Cardinal. One of the things that I forgot to mention is the huge tax pool that Cardinal has which is very valuable to Headwater going forward plus the fact that Headwater has recently drilled a few dusters, thereby reducing their viable exploration acreage by about 25%, according to Nuttall. What is also very interesting

[ziggy1410]

I so agree something is up...I think Cardinal is buying something,,,but something is afoot..

[ziggy1410]

During the Delta Stream speculation Ratushny, claimed CJ was looking for attractive additions...

[JayBanks]

I've mentioned it before, but being debt free for the most part is just a status thing, like wearing air Jordan's... They don't make you run faster, they just make your feet look better while running... I would rather have reasonable debt and make moves that are accretive, it would be easy sit back and run a debt free company, but I think management would show real talent in being