RE:RE:RE:RE:RE:RE:Up $1 tomorrow. poise wrote: Yep.....,just trying to figure how to pay for the assets without dilution.
Poise
I’m not sure why there seems to be so much opposition to an Equity raise to help fund a GOOD acquisition?
I have been a Crescent Point shareholder since late 2008. They have a history of making GOOD acquisitions primarily with Equity.
The only issue I have ever had was the DRIP dilution which has been suspended, hopefully permanently.
In spite of the “dilution” they have consistently been able to increase the per share production and reserves.
The other consequence is that although CPG’s current debt is a bit high it is very manageable which has put them in a position to take advantage of the current situation and make a GOOD acquisition or two.
Scott Saxberg has implied that they would not be issuing any Equity in the near term. That said any “Good Plan” should “Not Be Wrote In Stone” and should be flexible.
When “Opportunity Knocks” it’s usually a good idea to “Answer The Door” if possible. Although my CPG position is currently under water I have been taking advantage of the recent share price weakness to add to my position.
Unlike many of their peers Crescent Point has not had to sell assets and / or issue Equity to shore up their balance sheet. I do miss the dividend but that is far from the worst thing that could have happened. They can increase it when the conditions improve but I doubt that we will ever see a $0.23 / monthly dividend any time soon if ever.
It has been reported that Crescent Point has put some Alberta assets up for sale. The recent move by the Alberta Regulator re asset sales is not going to make that easier to get done.
https://ca.reuters.com/article/businessNews/idCAKCN0Z731Q?pageNumber=2&virtualBrandChannel=0 Personally I don’t view using Equity to help fund a GOOD Acquisition as necessarily a Bad Thing. It just depends on the numbers…
As Always; Do Your Own Due Diligence; It’s Your Money !!