RE:RE:RE:likelihood of a takeover of MEGshambano1 wrote: yes I saw an article saying that IMperial was going to build a 50,000 bpd sagd operation on their current lands, but it didn't ahve a lot of details. ye sit would take a few years to get up to production for sure.
canadian oil sands companies, well the smaller ones need to consolidate with stronger bretherern for sure and better to get bought out by an integrated company which makes money selling products versus cheap dilbit to the americans, so they can add billions and billions of value.
the problem is that canada is too stupid to approve energy east or west, so our oil is land locked and that means the yanks will always have a cheap source of oil while they can sell their light oil for much more than what they pay for canadian WCS.
in this lower for longer environment, well at least until all of these capex cuts really limit future produciton growth and future spikes in oil prices, alberta will be a have not province for the enxt 3-4 years.
canada is to blame for canada's dependence on commodities, the yanks are just doing what they do best, make money at other's expense.
MEG will get bought out and maybe that's why the access pipeline sale has been delayed, any buyer will want the piepline or a long term contract to use it at affordable prices.
MEG is worth 10-12 as a takeover in my book, I wish it was more but high leverage and low commodity prices hurt their future value.
GLTA
10-12 sounds right at $40 WTI. Same thoughts on the pipeline. If they do end up selling the pipeline instead of the company it would reduce the debt by up to 40%, so I'm okay with that too. I like the fact that MEG has no decline rate. Other companies have cash flow at $40 WTI, but what happens to future stock value with a 20% decline rate??? Some companies have already lost 20%+ production due to capex reduction.