RE:Pacific Rubiales Acquisition RumoursWe'll see what Petrominerales goes for but $11/share would be 2x cashflow for PMG. Parex @ 6.20 is pretty much 2x cashflow. PMG was possibly more undervalued (albeit with more debt) than PXT on a cashflow basis so it's a great deal for the cash rich PRE who can easily service the debt while acquiring a cashflow machine.
I expect Columbian producers might rise marginally on this news but it looks like 2x cashflow might be the valuation benchmark right now, which PXT roughly trades at after today. If PXT can continue to grow reserves and increase cashflow then I can see us getting between $7-8 over the next few months. We'll also benefit from higher brent netbacks this quarter. I doubt PRE will make another acquisition this year (assuming they indeed will be taking out PMG) so maybe that's off the table now for PXT.