RE:RE:RE:RE:Whitecap-XTC purchaseFully, this is an unique situation and like an auction all it takes is two bidders.
Crescent Point, Arc Resources, and Srathcona Resources likely all took a look at the XTO assets.
Cresecent Point probably would be most desperate to get this and likely made WCP pay what they did.
It is very very high quality asset. Stuff like this doesnt come for sale often. Imperial had the money to get prime acreage in land sales.
Sucks for CPG. WCP may show temp weakness but it is a good long term move for them.
Montney stuff is really awesome and even the duvernay is real strong. And production history from 2018 to have some confidence.
But f*ck man, some of the prime montnay can hit 4 bcf of production at little over 4 years.
Duvernay is alittle weaker but still...just on NG XTO was hitting 1.7bcf after 12 months on duvernay...if you can average 5 bucks for NG that is very solid even with well costs.
Duvernay is paybacks well but they are abit weaker at year 3 and 4 compared to Montney....XTo has some doing 2500 - 3000 mcf at year 4 and they flat line and are not declining much.
That is what makes the prime montney worth so much and companies are so h*nry for...they can produce really well at year 4 and 5 and on....
fullyautomatic wrote: WCP is going to get murdered tomorrow. I'm only a bystander on this hence why I won't post on the WCP board but yikes... interesting and strange move by WCP this is the best deal they could find?