Merger of equals.Interesting graph by EN on X about the need for 'mergers of equals' in order to bulk up enough to meet fund minimums and attract the attentions of funds and institutions.
The theory is that low EV/DACF multiples are caused by too many small and smallish producers stuck in predator land because they are too small to attract serious money. GXE said much the same in their Strategic Initiative reasoning. If this entire cohort is in the same predicament, it may prod some action in the business arrangement sector to complete mergers. The problem, as usual, is the reluctance of insiders to pursue any course of action that results in their own sinecure being made redundant.
No matter what the benefit is for shareholders, self interest will trump it and, unlike an acquisition, a 'merger of equals' won't contain a premium for one side. We shall see what the future holds for GXE's long in the tooth Strategic Initiative.