RE: RE: RE: What Did Peter Hodson Say About PBG?
Q3 out. Production up year over year but they fail to mention that 4500 boepd was acquired in buying Peerless in Q4 last year and was therefore not organic growth. My concern here would be the massive growth to debt year over year up $315MM (debt, convertibles and WC deficiency) and the economics of THAI at $50/bbl.
As well, it is difficulty for Co's like this as everyone is going with the big quality names first with low debt and liquidity as well as cashflow to grow operations organically and do acquisitions cheap in the next year. Dividends, and distributions are king out there right now as well. The investors and the money eventually flows down to the juniors and intermediates like PBG but in this market that won't be for a while as long as you can buy Encana, CNRL, Talisman and Suncor for these extremely low multiples. Co's like PBG will lag those for the next year or so. As well this was a huge hedge fund play the last few years, they are now out of PBG and did their damage on the way out the door, forced liquidations on over leveraging and a few punters who were getting margin called as well. Sometimes you sell your best because that is all you can do to cover your back side.
Maybe a take out at these levels?
IMHO