RE:RE:RE:Slowly UP the scale ... Bne has a 40 million dollar bdc loan that has to be paid back prior to dividend resumption. At these oil prices that is probably 4 months of cash flow. That will be going to the bank line for now but they can write a cheque in 6-9 months to pay it out too. Just like Surge did last month. There are more restrictions than just dividends. I think growth is also an issue.
the merger idea is interesting. Two very different businesses with mostly the same mgt priorities. Cost of capital would be far lower.
PNE is a deal making machine run by an investment banking lawyer and bne does not really do acquisitions. Combined they would free cash flow about 200 million per year at these commodity prices.
PNE needs to keep adding some liquids to insulate cash flow a bit - a merger would certainly do that.