RE:Not a fan of the Ranger Acquisition Classic regret post from a guy watching on the sidelines waiting for his price. It took off from $3.80and he's been watching and waiting since, disappointed with the latest share price action, which took it $.60 higher in three days.
OR he has just discovered baytex and can't believe he missed out on an opportunity to buy it at $3.80. Now he greedily wants that price so he can cash in on this beast.
He is too greedy to buy a 40% cash flow company at the current price. He wants it for bottom of the barrel pricing.
That is why he's posting. He's actually a Baytex bull, a greedy bull, but the difference between him and us is he has no shares.
MyHoneyPot wrote: Canadians should be aware that producing 11 million boe of oil in the USA, the size of the convential oil and gas industry in the USA, is 10-15 times the size of the convential oil industry in Canada. (oilsands, thermal oil excluded)
The EaglesFord I am familar with the early movers in this play were Pioneer and I was part of the initial activity.
With oil business being that much larger in the states, do you really believe a Canadian company is going to buy Tier#1 acerage for Tier #2 pricing, and show Americans how it is done?
On market call i heard about Eric's expert resource going to Texas so he could provide Eric his accessment of the play, good luck! a Canadian with go down to Texas providing an opinion on a complex play 20 years in the making.
This is Tier#2 acerage otherwise it would not exist, the US enviroment is much more competative than Canada, and they have a much more agressive posture.
Now you have spread sheet jockies like Eric making assessment where he is going to tell the world that Baytex buying thes assets has turned it into a Tier1 play and the stock deserves a rerating, and they need to pay him 75% of the FCF so his expert trading team, (Which is the only thing he is good at) can trade out of the stock and leave shareholder holding the bag.
The only issue here is this, with the ranger acquisiton of approximately 3 billion, with more than a billion in senior notes to finance it, with 860 million shares outstanding, 2.8 billion in share holder liability, a 1.5% dividend, and share buyback in place, this is another TVE in my opinion.
The assets may be reasonable, but the balance sheet is a mess.
Good luck, with almost 900 million share how can they do anything that is meaninful for the shareholders, and with to much stock there will be to many sellers.
This looks like another Eric Nuttal Pump and Dump.
IMHO