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Pieridae Energy Ltd T.PEA

Alternate Symbol(s):  PTOAF

Pieridae Energy Limited is a Canadian energy company. The Company is an upstream producer and midstream custom processor of natural gas, natural gas liquids, condensate, and sulphur from the Canadian Foothills and adjacent areas in Alberta and in northeast British Columbia (BC). It owns and operates three sour gas processing complexes at Waterton, Caroline and Jumping Pound. Its footprint covers over a million gross acres (807,000 net acres) in the Foothills and makes up conventional gas reservoirs in North America. Across Alberta and British Columbia, its footprint stretches over one million gross acres of land, with ownership of three deep cut gas plants and more than 3,800 kilometers of pipelines. Its foothills include the southern foothills, central foothills and northern foothills. Its southern foothills have three main fields: Waterton, Carbondale, and Burmis. The Company also has a production facility in the Northern Foothills of Alberta and in Northern BC.


TSX:PEA - Post by User

Post by Maxmoeon Nov 02, 2022 12:49am
452 Views
Post# 35065260

Tax losses. Another reason for PEA Takeover

Tax losses. Another reason for PEA TakeoverAny tax expert want to chime in? I'm going to spitball. Pea has $700 million of tax losses. Too bad they lost so much they generated those tax losses but with the entire industry rolling in profits, those tax losses are worth serious money. I'm going to ball park the value at 25% of $700 million because that's the rate I see big profitable producers paying in Q2. So that's $175 million in value to any company that buys pea and can use the $700 million in losses. So what? On 158 million shares outstanding, that's $1,10 per share for tax losses. So at yesterdays nose bleed close of $1.37, after subtracting the tax loss value, the buyer is paying $0.27 per share ! They should cash flow, annualized, about $1 a share when they announce Q3. Just another way of concluding somebody may buy these guys. Soon. Even if they pay a 100% premium at $2.74 per share, after subtracting the tax losses, that's still only $1.64 per share, so less than 2X cash flow. 
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