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Pieridae Energy Ltd T.PEA

Alternate Symbol(s):  PTOAF

Pieridae Energy Limited is a Canadian energy company. The Company is an upstream producer and midstream custom processor of natural gas, natural gas liquids, condensate, and sulphur from the Canadian Foothills and adjacent areas in Alberta and in northeast British Columbia (BC). It owns and operates three sour gas processing complexes at Waterton, Caroline and Jumping Pound. Its footprint covers over a million gross acres (807,000 net acres) in the Foothills and makes up conventional gas reservoirs in North America. Across Alberta and British Columbia, its footprint stretches over one million gross acres of land, with ownership of three deep cut gas plants and more than 3,800 kilometers of pipelines. Its foothills include the southern foothills, central foothills and northern foothills. Its southern foothills have three main fields: Waterton, Carbondale, and Burmis. The Company also has a production facility in the Northern Foothills of Alberta and in Northern BC.


TSX:PEA - Post by User

Comment by Maxmoeon May 29, 2023 3:49pm
102 Views
Post# 35469181

RE:RE:RE:RE:RE:Q1 Results

RE:RE:RE:RE:RE:Q1 ResultsIt's like other deals I've seen done involving long term property leases for companies being taken over. It's very common with financial services companies that occupy a lot of floor space but don't have any valuable, seizable, physical assets. As the acquirer, You go to the landlord if the rent is double the current market and say "I'm not able to pay that rate". If the landlord tries a long term lock-in in exchange for a lower rate, which they absolutely will, you say no and in the middle of the night, or next weekend, move everyone out and cram them into temporary space. Now you have the landlord's attention. If not, the next month rent is due and I pay zero, I have his attention. So you want half the contractual rent for the balance of the lease, with an extension option for me to extend at that same 50% rate? Or do you want nothing but empty space you can't re-lease to anyone else until I drag out bankruptcy process for the now defunct subsidiary I no longer will even acknowledge exists? It's just business. Maybe greasy. Maybe hardball. Depends on your perspective. So I stop shipping sulphur because I make nothing from it. Now what? If I don't, pea goes broke, or best case scenario, is able to renegotiate a refinancing that is even more egregious than the current one. If I'm successful, I get the $90 million you suggest, I have some strength to renegotiate the financing rollover, and I get the regulators off everyone's back. So who cares if someone says I'm not "nice". Not me, not my bod, not my shareholders, not my employees. Just accounts receivable at shell. 
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