RE:RE:RE:Let compare POU and CR,PONY,BIRonly in "your world" did they pay $1b.
in the real world they paid $625m.
I could make a very good arguement that pipestone is a way better
asset than karr.
for one there are more drilling locations.
I would argue that the # of karr drilling locations is rather "skinny"...
MyHoneyPot wrote: Nuvista shareholders paid a billion for Pipestone, when you consider share holder dilution, loss of share value, and the price paid.
It is always better when the insiders are aligned with the share holder and they will not dilute the company 30 percent like Nuvista management just did. Great for a management team that want to manage a larger company bad for existing shareholders.
I prefer share buybacks like POU has in place, 7.5 million shares and they have already gobbled up 3.2 million.
Karr as an asset, has a larger land base than the pipestone asset, Karr has 23000 boe of Montney production currently producing, and is on it way to close to 30,000 by year end.
Nuvista would have jumped at the chance to buy Karr for a billion, it a better asset, it producing 23000 boe a day 54 percent liquids and has its own plant (150 mcf day) infrastructure and be producing 43000 boe in 2020. Pipestone maybe is a great asset but the way the company did the deal is bad for existing shareholders.