RE:RE:RE:RE:RE:RE:takeover speculationTake a look what SPE can do with 183 mil Capx for 18. compared to what it takes RRX with 335 mil to do. Increase production from 23, 676 Q4 17 bbls, to 24,500 average for 18. Leaving only 22 mil free CF. Sure they have high CF but blow every cent to increase production 1000 bbls.. Plus they have have a 100 mil more debt. So in short RRX can only increase production less than 5 percent and only has 22 mil left over. Yet SPE can increase their's 11 percent and have 84 mil left over. ALL RRX info on their presentation
Outlook
Spartan's asset base is characterized by a light oil, low-decline production base with an extensive drilling inventory of low-risk, low-cost, highly economic open-hole and frac Midale drilling locations in southeast Saskatchewan. The strength of the company's assets allowed it to deliver top-tier production growth in 2017, while limiting its development capital spending to 70 per cent of its adjusted funds flow from operations and investing in projects that create long-term value for its shareholders. The company remains well positioned to continue this business plan in 2018, ws floith its $183 development capital budget forecast to generate 11-per-cent exit production growth and excess fundw of $84-million (based on a $60 (U.S.) WTI oil price). The company will seek to use its free cash flow profile to maximize long-term returns for its shareholders through the development of its waterflood projects and completion of strategic tuck-in acquisitions. Additionally, depending on market conditions, the company intend to further increase its per-share net asset value through accretive share buybacks under its normal course issuer bid.