Good or BAD deal for CPG s/h?Well, this wasn't a surprise, as i've indicated on the SCR forum, that HammerHead evenutally sold out. What IS a surprise, is that CPG has done two BIG deals in less than 12 months, which is a VERY rare & surprising event in the Canadian O&G sector. After the Pipestone/StrathCona deal, i would have expected HammerHead to sell sometime next year and most likely to StrathCona as well at some point then. But it seems CPG is hungier, very agressive than most and maybe the DEAL was just too good for HH mgmt & Riverstone to pass up, waiting for StrathCona's offer in 2024 or later.
Well, one thing is for certain, HH got a VERY good deal and this was NOT cheap for CPG nor its s/h. So my hats off to HH & the Rivertstone guys for pulling this off, even i can't stand them or their tactics. And i agree with Seppelt here, that for this to work out in ther longer term for CPG and its s/h, they need at least an $75 wti average oil price over 5 years. Will they get it? Who knows......for now it seems ot be somewhat accretive, even though this was a RICH deal....
I'll take a closer look at the details of the deal and it's eventual effects & consequences for the sector & investors......and then i'll comment further. If ONE thing is certain now. to 100% is that CPG in terms of M&A is most likely done for good until well into 2025.........after the Canadian elections. As they'll need some much required time (and rest!) to fully absorb all these new properities into their fold.
GLTA