RE:RE:Anybody have some further thoughts on Repsol purchase?There are so many positives from this deal that it won't take long for Peyto to get its money back.
First they will tweak current producing assets almost free money there. The new production cashflow could go right to paying down at least most of the new debt??
The new plants they get, or old plants will be upgraded to Peyto's standards but give them almost unlimited potential to produce without the cost of having to build new plants at very high prices.
LNG developements are not far around the corner so the pricing platform for the future should be a lot more consistent and at higher prices. This puts Peyto into the top tier of companies in Canada.
Not sure about the costs with staff, facilities, and so on with Repsol. Employees? A few I assume may end up at Peyto but we save millions there.
Most of these new lands do not expire so they don't have to play whacamole to keep a property alive on their books.
And when you look at the new map Peyto just has to open up the back door to go their new properties, not all over the place, and far far away.
They know the geology inside and out.
Even though the debt goes up it is not onerous and I am sure Peyto will try to reduce quickly based on the current interest rate environment.
This also cements the dividend even at $2 NG prices.
I love it.