Discussion with IRI had a discussion with IR yesterday, and the shareholders do not have accurate and timely information in their hands. The IR of seven generations has a lot of opinions but very short on facts, they relate to actual state of the company.
March 8, condesate prices 68 U.S. a boe - 86 dollars/boe Canadian.
Last quater VII Generations got over 3 dollars for their gas.
He had no opinion on the fact that VII generation has 2X the reserves of ARC.
He has no opinion that they built a extra gas plant all in 500 million dollars.
He did admit that vii generation would have FCF next year of 700 million, i expect it more like 1 billion, but they can alway find ways to spend more money.
There is an absence of meaningful analysis of the merits of the deal, except promotional idea's with no actual numbers associated.
Where is the cashflow project for VII generation with 68 dollar condesate or the fact that you can hedge out 1 year at an average price of more than 63 US for condensate.
This deal is leading the VII generation shareholders to the slaughter, and the CFO came from Painted Pony and we know what happened with those assets, almost a repeat performance. Added very little in terms of value, really a glorified accountant.
IMHO