POU Share Buyback - Its the obvious thing to doPOU has a significant amount of assets on the balance sheet, and a lot of unused bankline. The debt in now under its 300 million target and will likely be significantly less by the end of the year.
NVA today - 37.3 million * $13.16 = 491 million dollars, or rougly more than 505 million in publicly traded securities.
With todays shareprice this moment of $29.78 means POU could buy back 17 million shares of its own stock without touching its bank line. A 142.3 million shares outstanding that is roughly 12% of the stock, and would have the same impact as adding 13,000 boe/day production. This would leave POU with 125.3 million shares, and it would reduce the dividend payout by over 2 million dollars a month, 24 million dollars a year. They also could just raise the existing dividend to $1.75 a year with no business impact.
So considering NVA is likely valued at 50% higher than POU, i would not be surprized to see them buy back their own shares. It only make sense with them trading at this price, and with 500 million of equity on the balance sheet that they could roll into their own stock. Buying their own stock through a NCIB would be better than making a bid for another company, paying a premium in value, when your share price is so depressed.
I think POU had will be forced and you going to see them buying back shares.
IMHO