Cenovus Energy Inc T.CVE

CVE/ATH

[andy604]

Well its a very logical marriage on these points:
1/ They are partners in the Duvernay [roject
2/ ATH has tax pools of approx $3b
3/ ATH 1.2 billion  B/O/E in place
4/ ATH no debt to speak of
5/ CVE has all the goods to buy, plus  they have refineries for ATH to fill their quota
6 ATH has 100 yrs of oil 
7/ At $7 a share would cost CVE or others 3.7 b, the tax pool would be seen as a big plus. The buy would probably end up a little more if oil contiues to rise
I would advise you to read both presentations on CVE and ATH, any other comments , this my own views,

[Quintessential1]

Good points and I'm not saying you're wrong especially with a longer time frame runway but: 1/ What is the Duvernay collaboration for? A life boat spinout for ATH management after they are bought like CEI when VET bought LEUCROTTA EXPLORATION? 2/ The tax pools would be handy but would have been even handier and cheaper when CVE had that $1B tax bill.  Were they that short

[downwithdotcom1]

all good points BUT ...CVE has committed to their own INTERNAL expansion while at the same time reaching their net 4 billion dollar debt threshold triggering a 100% FCF payout policy shorter term. The market expects them to do what they say and a buy-out of ATH just doesnt look feasible for these reasons. My opinion. dwdc

[andy604]

I seen a lot of mega mergers lately, some with loads of debt, i recall Baytex buying Ranger because they were non operators in the Eagle Ford, same as now with ATH being the operator, Big companies want to be the operator, yes debt is the villian in most companies, but if they think it would lead them to the holy land of oil they would buy. Anyways it is just a opinion, in oil anything can happen.