RE:RE:RE:RE:RE:COS and MEG takeovers2015ideaman wrote: I think 15 to $16 is a touch low...where can you find a producing 83,000 b/d oil company with approvals and ready to go for another 130,000 b/d....once oil returns to a reasonable fair price, meg will be a low cost producer and a excellent money maker...I guess the alternative is to go through all the processes and construction time with returns 5 years down the road.......just my 2 cents...I think meg was way oversold and came back to where it is now based on low cost and producing 83,000 b/d. A fair offer in my mind is $18 to $20 as you are buying an immediately profitable oil business that has expansion approved....cheers....from ideaman...
quote=shambano1]I guess it depends on what happens with the pipeline. I'm sure any acquirers of Meg will want to keep the pipeline. Now Meg has had lots if interest in their pipeline and infrastructure assets but maybe they are shopping the whole company as well just to see the range of prices and in case they get an unwanted hostile and that way they would be prepared This is a great management team, so I think they will look at all avenues before making s decision on selling pipelines. But I agree, 20 seems a very high premium to pay during low oil prices. I'd be happy with 15-16. Dyodd
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It's good to have lofty aspirations, but you need to use the COS offer as a bar. What do you value the reserves at? I think 1.1 billion is not bad. You also need to consider that COS has an additional 20,000 a day production. That's min 0.5 billion value. That's a 1.6 billion premium over the COS offer at $18 per share for MEG. I like MEG because I like crude long term, but offers that come now will reflect the current market.