RE:RE:RE:CEO I consider playing hardball with IPL and failing to acquire IPL is a miss step for PPL. The 350 million break fee isn't a win for PPL in my book but rather a lost opportunity of accretive value creation much greater than 350 million by letting IPL go. I'm sure BIPC would want more than $350M premium for any piece of IPL that PPL is interested. This is not a way to buy thing, especially from BIPC.
In PPL press release, near term synergy amount 150-200M is assured, and up to 6B+ in investment synergy. Assuming a small 10% ROR on future investment, that's additional 600M per year in future synergy return. All forfeited for a measly one time 350M payout. This is not visionary for a CEO.
- Near-term synergies of $150 to $200 million annually, which are expected to immediately contribute to meaningful adjusted cash flow per share accretion upon closing of the Transaction.
- Once the Heartland Petrochemical Complex ("HPC") is in full service, the combined company is expected to generate $1.1 billion to $1.4 billion of adjusted cash flow from operating activities after dividends annually, greatly enhancing its ability to fund existing and future capital investment.
- Combination will accelerate and de-risk accretive investment opportunities across various value chains, allowing for deployment of capital into projects at attractive rates of return. In addition to the projects currently under construction, the combined company has visible and highly probable unsanctioned investment opportunities in excess of $6 billion.
JayBanks wrote:
autofocus111 wrote: My take is that the CEO was doing too much manouevering of late. Too many announcements (CO2 capture, the IPL bid, new LNG deal and TMX pipeline move with inigenous partners). Meanwhile effecitvely abandoning the JC LNG project and their plastics plant JV. He's been running all over the map. You can only throw so much chit at the wall hoping something sticks before the Board says enough is enough,... less plans and more execution. Buyout of VSN did not deliver all the goods promised which raises doubts about viability of the long-term planning. It all suggesta a lack of focus really.
I very much agree, I'm not that disappointed he is departing for what ever the reason, I'm interested in a new voice. It seems lately any large failures are gonna bring about changes at the top and we are just next in line. Look at CN and really they don't have many issues with other aspects of the company but a failed large play and it's an attitude that someone needs to walk the plank. As a shareholder of them also, I'm more disappointed in that decision than this one,
I like do like the current ideas for expansion, disappointed we lost the IPL battle, not pleased we shelved our polypropylene plant as I was excited for that, Jordan Cove was neither here nor there for me, I'm one of the shareholders who was brought over when I accepted the purchase of Veresen and I believe that was one of our projects. None of the announcements have really moved our needle as our slow trot upwards really is just a recovery. ENB, KEY & TRP have all recovered to pretty close thier prices 2 years ago, where as we are 15-20% below in our recovery, yet I believe we have the best future outlook, with the least burdens to overcome and it has not been reflected at all in our preformance.
My biggest interest at the moment is if they are gonna up the dividend to close the year. (which I don't expect they will) I had 2 main reasons for accepting and adding on to Pembina after Veresen, #1 size and therefore ability to execute on growth ventures which I wasnt overly expecting to go smoothly with Veresen but I was content enough with what they had, and #2 dividend growth of 5-6% a year, this year was a struggle and we are still 20% below our pre-Covid price, but there was disinterest by the board early in the year to move the dividend which I understood reasoning then and now we have continued to trend upwards, I would like to hear consideration or even a token move of half a penny now and maybe a bit more in a few months, I think a raise would give us a shot in the arm on a few fronts to reward the current shareholders and get non-shareholders more interested, all the hype seems to be on the producers right now.