RE:RE:Market Just to expand on your statement that, "in fact it's better than ARC" and my own idea that it "might make sense to cash in on ARX and move it over to PEY" might ARX themselves use their own high flying share price torque to leverage a takeover of PEY and bring PEY's valuation up to ARX's level?
ARX just signed another LNG supply contract for 2029. Could they want to get a jump on the infrastructure to supply that commitment by picking up an undervalued junior like PEY while the market is not giving it its fair value?
I was looking at the monthly report Figure and noticed that Repsol had a network or sour piplines. What are these and as far as synergies go would they not suit an O&G producer like ARX more?
I have seen discussion here before about TOU picking up PEY but couldn't ARX do it and fill those half filled gas plants just as quickly and provide the marketing needed for the future?
PEY's market-cap is about 15% of ARX's so it could be a tuck-in ...just a little bigger. ;-)
GLTY and all
Quintessential1 wrote: The market is treating PEY like a gas stock the same as BIR is however PEY's management did not roll the dice on hedges like BIR's did which is why it is way outperforming BIR at the moment. We'll have to go through a period of high NG pricing to see if BIR's gamble will pay off and we may get that chance this winter. It is my guess that even with high NG pricing and hedging losses PEY will still outperform BIR. There are just not enough high NG pricing days in the season to account for the low NG pricing days throughout the year. That may change with increased egress.
Interesting statement that PEY is better than ARC (I assume you mean ARX), I could probably get behind the reasoning that PEY may potentially have more share price upside than ARX and certainly a better yield. Of course that is based on analyst's ratings and if you take the position that PEY is being price target rated higher than ARX then is the market knee capping PEY or ARX? Assuming of course that analysts are part and parcel to the market.
ARX has historically outperformed PEY at least over the last 5 years or so, so it might make sense to cash in on ARX and move it over to PEY if you believe that ARX has peaked and PEY has under performed and that PEY will outperform ARX moving forward. I am not sure I am in that camp yet but I do like both stocks.
GLTY and all
shenty46 wrote: Market is treating it like Birchcliff or other ordinary oil and gas stock, in fact it's better than ARC, looking for monthly report which would be nice to read on, we may have it on Monday I think