RE:RE:RE:SDE haltedSince a majority of the acquisition would be the assumption of high cost debt, the 'synergistic' (or whatever buzz word is in vogue at the time) cost savings on the interest alone would significantly improve the DCF yield for an acquiring entity.
I don't think TWM will be acquired in the near future: it's too small to make a difference to the big guys who are acquiring stuff and the Keyeras of the world are focusing on keeping their own house in order. There is also too much junk swept under the rug in the form of reclamation expenses, producing assets. They did sell off a chunk of the smaller assets, but the reclamation expense didn't drop appreciably.
When Pioneer closes and if they post a couple quarters of good DCF generation with PGR and Pipestone both at forecast EBITDA, they'll be back in control of their own destiny and can decide to spend money again to grow or to keep shrinking the company through paying down debt. It's been a long year of spinning their wheels, but that should all change in about a month with the Pioneer decision. Interested to see where it goes from there.
My cost on my remaining shares, I think I disclosed previously, exactly 1.001/sh. I became enamored of the story early on, and got bullish on AECO just before they went and bought a refinery. I've done some trading that I've done ok with, am am relived to have the shares back above water. I've done better with gas leveraged producers and loading up with ALA/KEY/PPL this spring than I have with TWM, other than that truckload of shares I bought earlier this year.