If CPG doesn’t rally within the next 30-60 days...There will be a takeover offer, mark my words.
The acquirer would suspend the dividend and use it to pay the interest on the debt, and then sell off some assets to lower the principal.
The company is worth we’ll over $20 with WTI at $70. It’s just a matter of time till a bid comes along if the price remains stagnant.
I also wouldn’t be surprised if it’s a management-led buyout. They know the quality of the assets that they have and they know that the market severely underestimates them. Scott would love to run CPG as a private company for 5 years, develop Duvernay and Utah, and then list it back on the public markets. They could make billions.
I think a buyout price of $15-16 would probably be accepted by most shareholders.