OTCPK:ARNBF - Post by User
Comment by
rockman998on Dec 04, 2012 4:43pm
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Post# 20683087
RE: takeover talk on investor village
RE: takeover talk on investor village CARLOS6
The common theme with ARN, PBN, CPG and a lot of other Canadian oil companies is that after they do drilling to replace their yearly declines and pay their dividends they don't have a lot of cf left to add to production so they issue debt or equity to pay for it. This includes CPG who by the latest count now have 370 m shares out. So debt and available credit is important for any takeover for these companies and quite often will be the deal breaker. I think the size of the deal with PBN and the amount of debt would be more than CPG is willing to risk not be mention the premium PBN shareholders would expect. Plus I think that all of the analyst who hate PBN would then put CPG in the same penalty box. However, it would jump CPG to 150k barrels per day.
I think next year we will see a lot of companies cut their capex and try to stay within their cash flow, and a lot of mergers will be based on the companies abilities to do that.