RE:RE:Newsfauxtomato wrote: This is the piece that was missing from the Q2 earnings release: continued surprises. The reason to own TWM is the focus and execution of management. No other midstream operator is doing what they're doing.
The 'Wapiti Pipeline' is from Ikkuma Resources. This acquisition is the simpler of the two and makes sense: location is great and plenty of future connectivity potential, both inlet from the field and output to existing TWM facilities.
The other part of the acquisition (Deep Basin & Montney) is a bit harder to figure out. I think it is from Husky, and the price paid seems extremely low, meaining there should be plenty of room for improvement in throughput over the next few years.
Will have to read through this again, but on first glance this appears to be a large piece of the missing inter-conectivity strategy.
Couple of things in here sounds very positive, first of all the pipelines they acquired could connect a lot of there asset together.
Secondly, the facilities they picked up are of large capacity, not sure if they are fully utilized or not.
And thirdly, they never issued any shares which is good, and a mystery. In the past the credit facility was manage very conservatively and know they are at 66% of there credit limit, something is brewing here! (All good brew) time will tell