RE:RE:RE:RE:RE:RE:What is the best price to get in?I think it's a tremendous opportunity for a new owner and same folks that were interested 6-12 months ago have the same opinion
But have heard mgmt was speaking with advisors/brokers on how they might defend themselves and this was at much higher share price for RMP.TO -- keep in mind, this is not first hand, just what I've heard from Canadian brokers and a couple investors --
But since the price is so low vs. the asset value it seems unlikely unless someone comes in at $4-$5. So they need to dig themselves out of this spiral and probably should be talking to the PE groups offering reasonably priced well bore partnerships which would allow them to accelerate waterflood, Gold Creek, infrastructure development and grow production from Waskahigan.
There are also guys running around looking to buy infrastructure and lease back to operator. You lose some of your low operating costs but it's not extreme and they get zero value for the gross invested capital in their infrastructure. Non core asset sales would help but low valuations for gas assets. If Gold Creek shows potential as a long runway with years and years of inventory they may sell one of their other core, producing assets since prices for stuff like Wask and Ante are healthy.
Companies with a very low cost of equity are issuing equity to develop their best assets. Those with good core assets (multiple core assets) and a very low equity price (cost of capital 25%-30%) are being creative and in some cases shedding one of their core, mostly developed and de-risked assets to go after something with a larger NPV and reserve growth potential. They are not issuing equity, they are being thoughtful and creative. Deeply distressed guys are doing whatever they can, but RMP isn't close to distress (on a credit metric/liquidity basis) outside of their low share price