RE:RE:RE:BTE has books values over $8 per share!MonstersInc wrote: Two things you will see once RRX is integrated. Lower of the book value on BTE and a much better balance sheet.
In looking at this, it's clear RRX holders did not like BTE. They dumped. That's why we are trading at just $3 on a $7-$8, financially sound stock and company with 40% of revenues in US tied to brent-pricing based Louisiana Sweet Crude. BTE gets over $100 CDN per barrel from its Texas assets being targetted by MRO.
RagingBull3 wrote: I think that's before the RRX/BTE merger. Now it's probably much lower. Most people don't understand what the RRX/BTE merger means for shareholders.
PROtrading wrote: The tangible book value is $8.13 and the book value is $8.10 for BTE.
We're hitting majour resistance at these levels. This is a good time to consider going LONG and HOLDING ON. Both are tough at this point, yes, I know.
That's why I'm here for moral support.
MRO is a very good company and they consolidated operations quite a bit - the question will be for them will be how they see Canadian assets - will they make a move and acquire a company like BTE and add Canadian exposure - the price is very low, the government is pretty much in disarray when it comes to the oil market, but the country is stable so that helps.
It really is just a question of what they want to do - Eagleford reduces the risk on a buy of BTE and pretty much would likely cover the entire acqisisiton cost if they made a move and maybe if they didn't want to be in Canada they could sell it off - it differentials get back into the $20's then they could likely get a good price on Canadian assets
The enterprise value is just over $3B - so a price of about $4.5B would translate into an offer of over $4 USD per share and that could possibly work if done when the sentiment is at an all time low - sentiment could go lower, but it has never been lower than right now and some look to buy when sentiment is at the bottom
with sentiment at the bottom they could also sit on the sidelines - don't know, but it would not surprise me to see an offer in the $4's USD range - and they could offer stock in a transaction