RE: RE: Halt For News - Guess? Swizzled your comparison to MEL is right on. Was following Midway and the metrics of the business combination support the much higher pricing for MQL I believe.
Here is the MEL news and the relevant valuation metrics. 67% oil / NGL and total transaction value of $96,300/flowing BOE. Applied to MQL for year end and probably $6 stock based on exit production and now higher share count of 52,500,000 shares with todays news.
SUMMARY OF THE TRANSACTION
Through the Transaction, Whitecap is acquiring high quality, high netback light oil assets, located predominantly in the Garrington area of Alberta and focused on the Cardium formation. The acquired Cardium assets are complementary to Whitecap's existing horizontal drilling operations in the Pembina Cardium play and have significant growth and upside potential. The Garrington Cardium asset has an extensive low risk development inventory of 199 (144 net) Cardium drilling locations. The production to be acquired at the time of closing will be 5,400 boe/d (67% oil + NGLs). The Garrington Cardium provides compelling full-cycle economics and is analogous to Whitecap's current Pembina Cardium operations. The Transaction also provides Whitecap with additional upside in the Beaverhill Lake light oil play in the Swan Hills area of Alberta in which Midway holds interests in 38 gross sections of land.
The Transaction has the following characteristics:
| Total Transaction price (including net debt) | $550.3 million |
| Production(1) | 5,400 boe/d (67% Oil + NGLs) |
| Proved reserves(2) | 19.0 MMboe (67% Oil + NGLs) |
| Proved plus probable reserves(2) | 26.6 MMboe (68% Oil + NGLs) |
| Proved plus probable RLI(3) | 13.5 years |
| Operating netback(4) | $43.00/boe |
Net of undeveloped land at an estimated value of $30.1 million, using $300/acre, the associated Transaction metrics are as follows:
| Production | $96,300/boe/d |
| Proved reserves | $27.38/boe |
| Proved plus probable reserves | $19.56/boe |
| Proved plus probable reserves recycle ratio | 2.2x |
The Transaction is forecast by Whitecap to be 3.1% accretive on 2012 cash flow per share, 5.5% accretive on 2012 production per share, 6.4% accretive on proved plus probable reserves per share and 5.5% accretive on net asset value per share, on a fully diluted basis, after accounting for the dilution incurred by the Offering.