GREY:LSTMF - Post by User
Comment by
JohnDDon May 10, 2011 7:12pm
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Post# 18556759
RE: Cresent and Petrobakken together
RE: Cresent and Petrobakken togetherThat would be nice to see CPG make an offer for PBN using their shares as currency. That would work for me.
Alternatively, CPG could purchase all of PBNs Bakken assets. PBN can take the cash, reduce or eliminate their debt and focus all their efforts on the Cardium and some of their other plays. that is their big focus - it works for me. With the high debt levels, they eventually will have to deal with it...you can't keep adding debt forever...At some point you have to deal with it by:
1) Raising equity - that won't look too good purchasing shares in the 20's and raising cash (selling shares) in the teens..
2) Reduce the dividend - I doubt they will do that unless they are desperate - and that is not the case today
3) Sell off some assets - see above
That would be great if CPG and PBN could do some kind of a deal in the BAkken, there would clearly be some efficiencies/synergies to a takevover/merger or asset sale between the two. Something to hope for...
John