RE: RE: Very Pleased with Equal Energy sale of Loc I am easy. They are now is fantastic shape financially and are highly de-risked. Yes a US MPL with a over-valued share price can afford to pay premium valuation for the reserves and production and still be very accretive for them. So yes a $190 million purchase price and assumption of remaing debt would generate a purchase price of $5.50.
Bakken13 why don't you wait to see what they company does first and realize that the company is in very very good financial condition and now has options. I disagree with you opinion on they cannot afford to pay a dividend. I calculate that at $86 crude, $37 NGL and $3.30 gas along with a $20 million tender of 5 million shares at $4 and a 25% DRIP that the company could easily afford to pay a 7.50% dividend at a $5 share price (as a starting point). I would be extremely happy with that. As a matter of fact with their financial flexibility, they could finance a small $2 million annual kicker (which in itself is 1.5% extra at $5) until the export market capacity catches up in late 2013 and removes a very sigificant percentage of the supply from the US market.
The US is NOT in an energy vacume. Eventually energy pricing with find equilibrium. The markets will assure this. Dry gas will take a little longer as LNG export infrastructure takes longer, but propane for instance will likely be solved within a year or less.
For you info Bakken, you have been a poster on Stockhouse for 6 weeks and already have 65 ignors. That I suspect is a record. I am not sure what you are posting elsewhere but you are ticking folks off.
However I found you post to be logical and not offensive to me as it challenges thought.