Interesting equity raise
Sure it kept the stock price near issue price but there is a bigger picture. They didnt need to do a bought financing for $80 million as by my modelling they will have $70+ million on the balance sheet in 2021. A debt of $10 million on CF of approx $150 million is insignificant yet they raised equity. It is obvious SDE is building the balance sheet for a further acquisition in its stated quest of being a 100,000 boed producer hitting critical mass. SDE has low institutional ownership and I think the equity issue is designed to address that while continuing more acquisitions. Entry into the Montney is not by chance I believe they are looking to consolidate here as well with so much under-utilized infrastructure available in the Deep Basin.
Simply put their is more to come with SDE.