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High Arctic Energy Services Inc T.HWO

Alternate Symbol(s):  HGHAF

High Arctic Energy Services Inc. is a Canada-based energy services provider. The Company provides pressure control equipment and equipment supporting the high-pressure stimulation of oil and gas wells and other oilfield equipment on a rental basis to exploration and production companies, from its bases in Whitecourt and Red Deer, Alberta. The Company's operations involve the rental of pressure control and other oilfield equipment to exploration and production companies operating in Canada. In western Canada, it provides pressure control equipment on a rental basis to a number of exploration and production companies. Its North American service lines are oilfield rental equipment. Its rental services offer a lineup of oilfield rental equipment for drilling, completions, workover and abandonment oil and gas operations.


TSX:HWO - Post by User

Comment by Stonksonlyup90on Sep 27, 2023 2:27pm
131 Views
Post# 35657529

RE:Hostile Takeover

RE:Hostile Takeover

CASH IS KING!!

If there ever was a time for Cyrus, or another investor, to make a move here now would be the time.

Cyrus owns ~45% of $HWO as currently structured. As such, 45% of the cash hoard is theirs.. what would the additional capital requirement be to purchase the remaining 55%? Pretty immaterial IMO!


Cyrus could make an offer in the $2.50 range - call it $122M, of which they would offset with the $45M of cash on hand. So true capital requirement would be somewhere in the $77M range. They could further sell-off the remaining Cdn business + Team Snub = $10M+ IMO.

Does Cyrus have the capacity to pay up for $70M for PNG? PNG could do $40M of operating income/year in the coming years... pretty good risk/reward IMO.

Maybe this proposed PNG spin-out is all smoke & mirrors? Certainly they've been dragging their feet on releasing the circular... something could be up.

^Pure speculation 

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