JV Tomorrow I'm sure anyone with skin at risk is eager to read the news on the JV, Korean style. I hope it is good news, but I have mixed feelings on this.
1- I didn't like this JV arrangement originally. I felt it was weighted too heavily toward Koreans. I could easily be wrong and probably am wrong. BXE is a well run company. However, as a stock holder I could see other options being better for us. This always seemed like a poison pill as far as any company buying out BXE.
2- I also see how this JV is better for management in terms of job security. It should also make BXE very stable.
3- The Koreans needing more time seemed amateurish to me. People with a few hundred million to invest ought to have their act together. If they can't come to the table on time, what does that say about future obligations? Maybe it will all be held in escrow. I hope so.
4- BXE is a ripe plumb for a hungry O&G company. If the JV falls through I'd expect BXE to be bought out fairly soon. I say this because there is so much money being printed and it is looking for a home. BXE has so many derisked drilling sites. NG demand is growing and BXE is hitting more oil.
Summarizing how I feel- Short term bad if the JV falls. Long term happy about the future of BXE. I've owned about 10 of these Cardium plays and 4 have been bought out at a nice premium. So, whatever happens with the JV I am not worried about the future of BXE.