Sparta D sitting on the fence?We (not a s/h btw!) should be getting some news/update on their "strategic review process" very soon. Probably in the next month or so. This has been ongoing for quite some time now, about 3 months, and i'm guessing it's reaching its end. Whether the final results from that arduous process will be to the liking of s/h or not, is a different story.
So why am i posting on this board? As some might be asking yourselves. Well, even though i'm not a direct holder of the stock, what Spartan does WILL at least indirectly affect some of the "other" ep's i'm invested.......MAYBE even in a strong direct correlation or relationship. It just depends on WHAT they do next! Of all the O&G ep's i follow, Spartan has been one of the more akward & difficult ones to figure out. Not really sure if their in or out, up or down or if they're still or have had their fill. Just a real difficult puzzle to piece together as to their ultimate intentions.
Added to that, it's one of the few ep's who's stock is STILL trading on the higher end of it's range despite the rest of the sector, despite falling oil/gas prices AND despite not being on the level of a Canadian Natural, Tourmaline or Ovintiv or any of the super majors and thus not being able to command a premium of their equity. VERY confusing to say the least and I may NOT be alone in that frame of mind or assessment. I'll take a wild guess here, but i'm betting it has a lot to do with that questionable "strategic process" they have going on and WHAT they are REALLY going to do with the company gooing forward.
In my own personal view, I would be VERY surprised here IF the company decided to call it quits and sell out to another. Especially after 3 or 4 years of having their pedal fully to the metal by going on acquisition spree during that time. The last one being as recent as barely a year ago! Therefore selling now would seem counter-productive, counter-intuitive to what they've been doing up to now.
So if they decide to exit the stage completely, well, g-o-ll-y. GEE...wouldn't that be an unexpected turn of events. In my book, it's more likely that they continue following their telegraphed script AND get MUCH bigger than they currently are. But i definitely wouldn't totally rule out an outright sale, especially with the folks involved in this company over the years. In case some are wondering, spinoffs & asset divestitures also wouldn't make sense here with Spartan, it just doesn't add up in their case.
In a takeover "possible" scenario, due to Spartan's size & location, the list of prospective buyers is very limited.....VERY. Not many could gobble up Spartan that easily & at a premium no less. I could probably count them on one hand and they're ALL Canadian themsleves. There are no others ans NO savior or interest from the South this time around i'm afraid. I guess we'll just have to wait and see what that "strategic review" comes up with and where they go with it......
I'm really curious if i pinned the tail of the literal donkey on this one......if for no other reason.
GLTA