RE:RE:RE:RE:YGR vs. Surge Got bored so thought I would spew a littlle.
At SGY Colborne takes a lot of criticism as a serial deal maker that rarely adds value over time on a per share basis. He is a tire fire in a difficult market, but he gets a lot of attention in a good oil market. The investment dealers love him because of the deal flow. His drilling team is awesome - pioneering even.
his last three acquisitions are all great properties though. The latest has awesome decline rates too. Shame about the dilution. Or the 8.5 x 1 roll back. Or selling part of their best property last year due to debt problems. No idea on the ARO - my suspicion is that it is poor.
I couldn't imagine a worse comparison than SGY and YGR. You would have to change industries to find one that is worse. Seriously. YGR would be their operational antithesis.
SGY
- 4 major transactions in last 18 months - YGR - zero
- operate in 5 different zones, three different oil grades, 2 provinces. YGR -1 for all the above
SGY stop- start drilling, water flood, little nat gas or ngl, multiple debt issues, debt refinancing and Share issues.
YGR - continuous drilling in one concentrated play area. No dilution. No roll back. No refinancing costs. Poorer drilling results. Less innovation. BUT - cost control, minimal ARO. Organic deleveraging.
I bought back a little SGY after the acquisition.