CONSOLIDATION Hi Again !
First sorry about my spelling - grammer ( I - Phone )
To me the next stage in this cycle is for companys of a similar Ilk to get smart and consolidate , EGO is the only thing preventing such moves when they make sense.
So paying to much is one thing , but a slight premium to one to merge the other and simply have a higher share price. By doing a 2 for 1 after. So a 22 dollar share price or a 20 dollar share price. I don't get hung up on share count. I just like lower share counts because if things are good there is less sharing lol.
Imagine the synergies you could gain , the shares facilities ? So you may have read Cressnt point is going to be in the Carbon sequestration business there putting there model together as I type. Whitecap does this already.
When I think of similar companies , these two are close ? Except whitecap now has premium motney assets. So I would love for someone smarter than me to tell me why or why not this merger works or doest work ?
Next ARC RESOURCES. I have been told they want to be the biggest and they are looking to scale up. So to me Whitecap makes a tonne of sense gvien the motney acquisition and the 130 k plus barrels this adds to production. So Arc has issues with there BC Montney assets. They are I here close to be resloved. Whitecap allows them to grow this business while they wait. I could be way off.
This is just where I see things going. Aside
from possible gobble up bolt on acquisitions? That I would imagine are priced beyond reality at this moment.
Anyone else find this interesting ?
c