RE:RE:CWC Q2The only thing thats changing in the oil sands is the rate of growth as they will be adding production for at least another 10+ years. Lack of pricing power has more to do with still too many oilfield service co's competing for 2 few $$. Short of Brokfield Pvt Equity buying in the last 25% most of the interest which they have received has been for individual operating units.
ESI-Ensign has done a numerous deals since their 1993 IPO with most coming on the way out of a downturn. Their balance sheet is challenged so I doubt they'd be interested in the whole company, probably just the drilling rig division. 9 rigs, fairly new, I'd assign a 75 mil valuation.
STEP-Step Energy Svcs, newly public, very comon for a newbie to use their equity to add to one of their core divs. 9 coiled tubing rigs, mid spec suited for insitu, I'd asign a 65 mil valuation.
HWO-High Arctic, on record looking to add to cad divs. 73 service rigs, would make HWO the #2 player. I'd assign a 80 mil valuation(highest line utilization)
Ad it up, = 220-20 mil net debt= 200 mil valuation=.50 a share
Brookfield has a decision to make, take it down and re-ipo or sell off piecemeal later OR break the company up and unleash the value now.
MuskokaJoe68 wrote: Who is the incremental buyer of a CWC.V when oil sands has a hard time bouncing back if their is no pricing power in the drilling Segment?