RE: RE: also voted today Funny how people are spreading lies about WFE on this forum .
A few days ago, it was that WFE's management/board don't own any shares themselves - a blatent lie.
Now its that WFE has little or no debt. On June 30, 2012, WFE reported $175 million in debt. Or around 1.3X annual cash flow! WFE has a lot of debt...........$175 million dollars worth!
Guide had $226 million in debt on June 20, 2012..................or about $50 million more than WFE.
I don't understand why some posters are claiming Guide is swamped by debt, while WFE is almost debt free. Spreading lies just makes you look stupid.
The new combined company will have production growth of about 15% financed by internally generated cash flow. I'm neutral on this transaction, and under the circumstances, I'm willing to give Penn West's mgmt team the benefit of the doubt.
The only real money I've made in this sector in recent years has been by having my companies purchased by the Chinese. WFE obviously couldn't sell itself to the Chinese as is - otherwise they would have done so. I'm hoping the combined company will be more attractive (somewhat similar to Daylight's asset profile when it was purchased last year).
Lastly, at $4 per share, we Guide shareholders are getting all of Guide for about $160 million, plus their debt...............or about $390 million - thats about $28,000 per flowing barrel............thats one heck of a deal!