GREY:TBTEF - Post by User
Post by
cigarbutt1on Jan 24, 2017 2:43pm
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Post# 25748404
More news from the oil patch
More news from the oil patchThe oil and gas mood is definitely improving in Canada.
https://www.calgarysun.com/2017/01/24/canadas-oilpatch-moves-into-growth-mode-finally
The US President (for better or for worse) will also push for unrestricted movement of oil (pipelines), See related news. This is coming after our own PM authorized more pipelines.
The longer it takes for the transaction to close (approval from Investment Canada/Chinese equivalent and the completion of the purchaser's financing) in this rising oil price environment, the more cash accumulates and accounts receivables accrue in the receivership. This could result in more significant distributions. In the case of the Long Run deal, that process took a few months. In the TBE case however, closing of the transaction is likely to be more expeditious. Given the cash flow "torque" at present levels, this could make a relatively significant difference.
In relation to "the true value of the company", one of the key questions is to figure out if the present situation corresponds to seeing the light at the end of the tunnel or to a temporary blip in a secular downhill trend. Expert opinions vary tremendously here. People involved in this kind of investment need to walk the talk.