Twin Butte Energy Ltd TBTEF

Valuation analytics then & now

[bshort92]

When Northern Blizzard purchased Nexen's heavy oil assets two years ago for $975 million consider the transactions metrics: Basically NB purchased 750 net wells producing between 15,000 and 16,000 BOE.d throwing off a past four quarters cash flow of $130 million based on an average WTI price of just under $71. You can now see why a firm controlled by a syndicate of two well regarded multi billion dollar private firms (combined assets managed exceed $20 billion): NGP and Riverstone would commit close to $1 billion for the Nexen assets. What prevents these players from doubling their  lucrative heavy oil asset base by targeting a similarly sized firm for the same price two years later amid close to $90 WTI?