My thoughts on the Pou/Cpg dealThis commentary will be "somewhat" brief due to a lack of time and my disdain for SH as a suitable platform to discuss these matters. I wish we had a worthy alternative to this "now" worthless website, but alas there is not and have no choice but to state the few thoughts i have, briefly, on here. And i ONLY do this because i know there's a few decent, honest & true investors like myself, who are attempting to do all they possibly can to gather as much relevant information for their own personal endeavors. Information not only to make better investment decisions for their own financial well being, but also make themselves more informed, more knowledgeable individuals.
Therefore, i will approach this on two fronts. The uninteresting & predictable AND the enticing & the unexpected. I will discuss the former first, as it's the simplest & comes from the basis of a solid foundation without too much deviation. So what's so uninteresting and predicable about this deal? Well, that part comes from Crescent Point's end. Simply put, it was easy to tell where CPG was headed and therefore not really a surprise they picked up these assets from POU. Well, not a surprise to those that understand. Lets just say that CPG hasn't deviated much from their overall agendas.
I've repeated many times on here, that CPG's intentions were clear even when they were possibly rumored for some type of association with Pipestone. And this deal they just announced with POU further confirms what i had suspected all along, that the old Piper isn't exactly the perfect fit for them. As i've said, they have better assets they can buy which provide more synergies than PIpestone. Now it's possible that CPG "may" have kicked a few tires at PIPE HQ a while back, but i really doubt they had ANY real intentions for ANY REAL deal with Pipestone. Both companies just don't fit well, and both have much better dance partners available. So enough said on this front.....
On Paramount's end on the other hand, i must say, i was really taken aback & surprised that POU decided to divest thmeselves of major assets in Kaybob. Granted it's not their MAIN producing core area like GrandeP, but still, i would have expected them to ADD not reduce their assets in their portfolio. I really thought they would be one of the few that would go on an eventual buying spree & get much bigger and stick aorund for awhile. Well, so much for that thought or idea. So if Paramount has no intentions of supersizing, what's their end game here then? I this just an opportunistic deal like the one Kelt did a few years back? Or is it a change of heart & they're attempting to totally reposition the company elsewhere. Maybe even the beginnings of a possible exit strategy by mgmt? Which the last option, would really be surprising.......to me.
Yes, i know, things are getting really confusing. But look on the bright side, if there's one thing that this deal does, and does without doubt, is that it makes it crystal clear that CPG has NO interest in Pipestone or their assets. Paramount on the other hand, is a totally different story alltogether and possibilities are far reaching & still numerous to count just on one hand. I told you guys that Paramount would show their ugly mug again, and they have, just not in the way i had expected. And i fully expect for them to show it again once or twice....sometime down the road, because this story is far from over.
The deal itself, is VERY interesting in several ways b y the metrics employed, not only for the sector itself but also for Pipestone. I'll leave those little juicy details for guys to read through, sort out and make your own wild assumptions. The only thing i'll say on this is the following. Don't look at this deal with a 100X magnifying microsscope like some fools are doing, zoom out and look at it from a very distant perspective and you'll get a better picture of what's really going on. The smart investors always know when to use a microscope and when to use binoculars.
GLTA