Paramount Resources Ltd T.POU

Strathcona

[Raymondjames]

What is interesting about the dissenting view on this deal is the potential leverage for Pou. Cumulatively equals a 3 bagger. $50m gets pou $100m added to their line. $100m get $200m  etc. Pou likely to get between 100m to 170m from Strath. $200m to 340m on the loc. 

sell this puppy down to the low $2s. Heck drive it down to 80 cents. I will keep loading up all the way down. This should be mid $3 right now. Stupid cheap.

[Barnbeezeeeeee]

"Facility availability in excess of $900 million is subject to the Company raising junior capital and obtaining required levels of lender approval.  Availability will be increased by $5 million for each $10 million of junior capital raised," RJ am I missing something here? The way I interpret this is that if the Strath shares net them 100 million, then

[Raymondjames]

Stand corrected. $100m plus $50m on the credit facility. 

[jspaceman]

the last thing pou needs is more credit line... they need to put their credit cards in the freezer.

[MyHoneyPot]

POU should take all the money they can get, because it will pay back in spades with amazing returns.  Just imagine with Wapiti and Karr plants full, you are looking at 110,000 boe with less than12 dollar op costs.  28 dollars boe -12 op cost = 14 dollars a boe. 110,000 * 14 *365 =  4 dollars a share in free cash flow.  That at 28 dollars a boe, fourth quater 2019 we were

[Raymondjames]

Agreed. 

[jspaceman]

POOR use of credit has been the major problem for these managers for YEARS. it's why the stock is $2.