RE:RE:buyout of SRX by CNQ SRX have good BC Montney lands and facility ownership at Nig Ck and Fireweed (being built) as well as a key pipeline to Aitken Creek which then connects to Alliance and/or TC Energy new mainline. Good liquids on most of their lands.
The Blueberry River land claim is not positive for most BC Montney producers. See page 29 of the SRX October presentation for the map. Each of CNRL (post Painted Pony) and TOU (post Black Swan) can duke it out from here because it is now (IMO) easier to buy existing assets in NEBC than permit new facility builds. Both those deals came with facilities or access to them.
AAV on the AB side has:
- 87.5% ownership of the 400 mmcfd Glacier plant which will become a CCS local hub with Entropy tech add on.
- The Entropy side-car will get funded (value tbd). AAV owns 90% of Entropy at present.
- None of the BC land claim issues
- Very low OPEX
- Great Montney gas assets and exposure to oil on existing lands and owned oil facilities
- Declining debt
- T service to get to markets
- Indication that they will provide a return of capital to shareholders (?).
Best AB Montney story out there.