RE:RE:RE:RE:Kelt will go the way of HuskyTo clarify, I was suggesting some debt, not all debt. By the way, I'm wondering if CVE will expand the Husky upgrader? If they do, that means less condensate demand from them. That does seem to be the best business model (CNQ). Somewhat bearish for condensate and bullish for gas long-term, no?
jspaceman wrote: first off a super major has zero interest in buying all of KEL. Second, investors want producers to DEleverage. borrowing the full purchase price would not be wise in this environment, even if KEL was for sale. it isn't. As far as shell goes specifically, KEL would not move the "needle" for them even a tiny millimiter. it wouldnt' even be worth their time. Shell wants a TURNKEY asset that moves the needle. THINK BIGGER. like real big. like tourmaline big.
I love folks throwing ideas at the wall though. makes for good conversation on the boards.
pablo87 wrote: Also, since Kelt is debt free, the buyer could borrow against Kelt's assets to make the acquisition.
Cheadle12 wrote: The beauty about Kelt now is exactly as you said "debt free".
This means that any of the larger names can simply cut shares to acquire them if a deal can be made. What isn't on their side is the size/scale.. not a lot of production, but certainly good for a Shell or LNG JV partner to offer an all share premium deal for the Kelt team.