the market is wrong The news is good considering we are in a depression for commodity prices.
maybe investors where expecting billion dollar news but essentially ATH exchanged land for future CF guaranteed with having to invest billions which they don't have and will never have.
this transactions strengthens their balance sheet, gives them lots of breathing room, lowers debt to a much more managable level and now they can concentrate on HS1 and the enxt phase which is the debottlenecking phase to expand production.
I get the sense that this is the first of many possible deals with murphy and if anyone say like suncor comes a knocking to buy the rest of ATH, they will be rebuffed by murphy.
so now we wait for 2016 budget and their plans now that they are in much stronger financial posttion.
I'm actually quite surprised is has fallen this much from the top of trading today, this deals gives them a lot of optionality, stronger balance sheet and a future partner of acquier.
I think murphy wanted the whole company but why not wait until HS1 is fully operational to see if you like the operating numbers.
as far a mid streat assets, I found their statement interesting, they are going to keep these assets in the medium term???
as to other duvernay assets or other monenty assets, I'm not sure how much is left for ATH at 100% interest. does anyone know??
still for a spec play with low debt and a strong partner, ATH is your play.
as oil prices recover, but this could take time, that will present all kinds of options for HS expansion and or other oil sands JV's.
but DYODD