RE:RE:RE:Whitecap acquisition of XTO Canada One of two things will happen. The price of the commodities stay high due to Putin, ESG and the unwillingness to overproduce or something really bad happens and the commodity prices tank. If it's the latter WCP will be hammered as hard as arrogant CPG was when they were constantly trying to grow. 90% down elevator. I'm sure the banks are in the camp that oil and gas high prices will stick around for a while.
Wildfury wrote:
You're correct, in this era of anti oil the banks gladly provided the capital to Whitecap feeling safe with the future plans. They know the potential of the the acquired lands in prime locations, plus they could potentially sell some sections in the future to utilize core holdings. To produce 32,000 bpd equivalent today would cost multiple millions in drilling, infrastructure costs, not to mention there's no guarantee with drilling success. The future looks good for Whitecap, patience will be required.