RE:Distress SellersSukhi19 wrote: CPG must be eyeing LTS as whole or Bakken unit as a lucrative target. LTS must be in desperate situation with bankers breathing dwon their neck,
Sukhi19; There is no doubt that some or all of the Lightstream assets would make a very good addition to Crescent Point.
Unfortunately I don’t think that CPG is currently in a position to make another large acquisition.
Acquiring the LTS shares would not be a problem. They could do another share swap.
The problem is the LTS debt. On March 31/15 the total LTS debt was abt. $1.73b. Crescent Point would have to assume that and add it to the $4b or so debt that they currently have which would have them approaching $6b in debt.
At the current CPG share price of abt. $20 there is no way that they would be able to issue yet another “Bought Deal” to reduce the debt and / or acquire some of the LTS assets.
As enticing as LTS may be if Crescent Point racks up too much debt to acquire them and the extreme weakness in the Oil price persists for a prolonged time they could find themselves the Prey instead of being a Predator.
I think that Crescent Point has more than enough on their plate and they need some time to digest what they have before making another trip to the buffet.
As Always; Do Your Own Due Diligence; It’s Your Money !!