Is Team Trudope targetting Alberta.....To squeeze a few more bucks out of those poor O&G producers so he can continue paying for his crazy socialist agendas and all those generous safety social nets he's implemnted in Canada, as well as paying for all the useless immigrants he's letting (Biden is sending to him !!!) in thtough that porous Northern border? Looks that way to me when you factor in his crackdown on small businesses AND also targetting individual retail investors.
https://finance.yahoo.com/news/whitecap-resources-inc-announces-receipt-224900474.html
Now i don't know what all THAT is about, but i do know that such occurances as the unfortunate developpment above is quite rare in Canada. Usually these things go unnoticed & are ironed out quite smoothly without ANY serious or long lasting issues. So when you see something like this AND the company going "out of its way" to making it public...........is even more intriguing. For those that don't know, the O&G producers up in Canada have a thing called Tax Pools & also Tax write off as their American counterparts have ......according to GAAP practices. The former not being available to Amercian Eps in the US i believe. I could be wrong here as i'm no CA or CPA.....so if that's an erronous statemen.....t please pardon me. After reading the news release, it seems the latter is at issue not the former.
With that aside, i haven't posted on this board in quite some time. But i do visit once in awhile just to see what's up and keep upto date with Whitecap's progression. As i do follow the company still, since almost the begining, i'm not really a big fan of theirs or a s/h. I think there are much better opportunities to be had in the Canadian O&G scene than Whitecap. But that does not mean that Whitecap isn't a good company or investment, it just means it isn't MY cup of tea. I see Whitecap as basically a solid operator & one of the workhorses of the Canadian oil patch BUT nothing that stands out or makes me interested as an investment......so i'm more or less neutral on them as per my opinions/views.
Just a few notes, for those that are interested in listenng. Whitecap for me is on the same level as someone like Crescent Point.....across the board on almost every aspect. I see really no significant differecnes between them aside from maybe their point of operations. So in my mind an investment in WhiteCap is just as good as an investment in CPG or vice versa. And what affects one has a good chance to affect the other as well. And this brings me to my main point i want to make here.
As most of you know by now.....or at least some of you at the very least, Crescent Point just made another asset acquisition just a few short weeks ago. And quite an interesting & significant one as well in the Albertan Montney region. For those that don't know, CPG bought up a portion of Spartan's assets in the lower Montney or most of Velvet's old properties. These a VERY good assets in my mind and a great move by CPG. So why is this relevant to Whitecap? Because like i mentioned above, what affects one, usually affects the other quite soom after. So because these two companies usually move in lockN'step with each other, i'll take a wild guess here that Whitecap will be making an acquisition of their own very soon as well.
Now WhiteCap really hasn't done much on the M&A front since their acquisition of XTO Canada's assets, the Canadian arm of now long gone American operator XTO Energy, which was merged with Exxon eons ago. Which btw, was about a year ago today. But i'm taking a wild guess here that WhiteCap is most probably prepping for another "accretive" purchase so it doesn't falll behind and keeps pace with large operators, peers like Crescent Point. So when can something happen? My BEST guess is that at the earliest.....sometime before the fall. The fall in North America that is lol. And at the lastest, during Q1 of 2024. As i'm NO grande wizard or Oracle and this is just ballpark predictions, i'm usually pretty accurate with my assessmemts in this sector. Which is a 90% hit ratio.
So the NEXT NIG question is WHO or WHAT is WhiteCap going to target? Well, if my initial observations & assessment of the company runs true, meaning they "usually" follow what their sister company does or vica versa, then i fully expect them to acquire someone or specific assets in the same area or fashion that CPG has. The probility here that this actually happens EXACTLTY this way is like 75% in my mind. But who or what that could possbily be is another question alltogether, as the list of potential targets is quite wide & open. Could be someone as small as Kelt, to maybe making a deal with someone as large as Paramount, in the same light as CPG did with Spartan. But one thing is certain in my mind, they will act and act soon.
If any Whitecap s/h has any insights or anything further to say on this topic, i'm all ears and would be interested to hear what others who are actual s/h think or feel about this. Any additional enlightenment is never a bad thing.....
GLTA