The TRIO of Empires....Well, this shouldn't be a surprise. After what StrathCona just pulled on Pipestone, Tourmaline follow suit with a cheap acquisition of their own, by buying out formerly failed/bankrupt but now private entity Bonavista. So as i understand this deal, it's ~1,5B for about 60K of boepd less the debt? Or is the debt included in the price tag of $1,5B? Seems like BonaVista had about ~500M of deft from what i could gather, but don't take it as fact because i'm not 100% on the figure. It seems that both Tourmaline & StrathCona are getting the reputation of building out an energy empire in the same fold as Canadian UnNatural. The other member of this unique group.
As for those that don't know WHO Bonavista was, it was a NG weighted producer which went BK in 2020 and all the s/h were bascially wiped out. I had called out the failure months before it actually filed. One among many that went BK from the 2017-2020 period. After they filed for for chapter 11 or CCAA, the Canadian version of creditor proteaction, i had lost track & interest in them. So as i understand it, a private equity firm boughtout whatever was left from s/h and took it over and consequently wnet private. And now it has been sold to Tourmaline for cheap. Good for Tourmaline and its holders, sad for Bonavista's previous retail holders. Which were ALL wiped out during the failure & eventual bankrupcy proceedings.
So as i expected, 2023 is REALLY a banner year for both Canadian & US M&A. Especially on the Canadian side. So as both StrathCona & Tourmaline have playes their hands, there's only Canaidian UnNatural left to play theirs. And i wonder WHO THEIR target will be. Surely it has to be one which is extremely cheap in term of valuations. But just who that could be, who knows.....
GLTA