Re: It Begins...This is so great. Another merger in Alberta. PSD must be loving this. As mentioned before, when companies that drill in Canada merge, PSD usually makes a a big payoff of money in what they call "transactional sales". Since those sales have no associated expenses, except what it costs to deposit a big cheque into their bank account, it is pretty much all profit.
Yesterday, Crescent Point announced they are going to takeover Hammerhead Energy. You will see lots of similar mergers in the future, and a lot more exploration and drilling, as well, to replace all the oil and gas that has been drilled in the last 2 or 3 years, where most companies decided to just pay out their profits in dividends, instead of replacing those reserves. As already pointed out below, if that is all an oil and gas company does it will eventually run out of reserves and then, of course, go bankrupt. Assuming they don't want to do that, I suspect we will see quite the boom for mergers and drilling activity over the next couple years and PSD always cashes in on both activities.
I suspect PSD may just have the best couple years they have ever seen coming up as all these companies come to this same realizatio. What is even better is with regard to PSDs stock price, investors have not put these pieces together yet. You can still buy this stock below $2. Wow eh!
https://www.crescentpointenergy.com/invest/news/crescent-point-transforms-portfolio-strategic-alberta-montney-consolidation