VIII Capital - SDE note "SDE-T (BUY; TP: C$27.00) is likely very close to a conclusion around its process to evaluate strategic alternatives in an effort to enhance shareholder value. We believe an announcement is imminent and see strong reasons why SDE could be a takeout candidate: 1) SDE provides scale; 2) It is the largest producer and land holder in the oil window of the Montney; 3) SDE's large land position in the liquids rich Deep Basin provides exposure to the expected improvement in natural gas fundamentals in 2024+; 4) The company has a meaningful amount of tax pools; and 5) it provides top tier debt adjusted per share growth. For more information, refer to our 2/24/2023 note (link)."
- VIII Capital March 23, 2023