RE:RE:CPG & ShellI agree the deal for Shell's Duvernay asset has some risk to CPG, and probably most of that risk deals with oil price. IMO the risk is a good one and maybe a necessary one.
One nagging concern I had with CPG is they didn't seem to have an early stage asset to provide a large inventory of economic prospects for development. They need such an asset as CPG's existing core assets are quite mature and decline must be a factor. Where will they invest to offset decline in mature fields or enable future growth in oil prod? The property down in Utah was supposed to fill that need, but we know that didn't pan out. Maybe many reasons why the Utah venture didn't work out, but the biggest problem I think was bad timing... acquiring the asset just before an epic multi year crash in oil price. There is a good chance that the acquisition of the Shell assets is very timely. I agree Eric Nuttall's macro assessment for Oil supply/demand, and if that thesis proves correct, this acquisition could be a big winner for CPG. Good Luck!