RE:RE:RE:Unsold sharesMoemoney42 wrote: Well there's certainly a lot of speculation going on here.. I'm still in the camp that the acquisition is positive and accretive.. bolting on near by acreage and facilities with room for increased production will prove to be a good move in the long run.
Not to mention some decent contracts already in place. They also have the rigs contracted in place so they don't have to wait in a que to obtain rigs so that's a plus!
They can optomize drilling techniques and facilities to most likely increase production with ease.
They will also be able to handle the additional acreage with less personell due to the close proximity of the HHRS holdings, so additional operational synergies are definately there.
I like the deal and I have a good feeling that they'll be able to cut that debt down quite quickly!
I'm glass half full so not too worried.. I'm more worried about the manipulation that goes on in the market than the metrics of this deal..
You know Moe, I'm also in the camp that the deal.is accretive. I studied the merger deck quite closely and listened to Craig explain it on BNN. If oil averages 75 for the next 5 years it's a good deal.
But there's some things I don't like. They talk about 15% dividend increase. BS. Quite honestly I think the dividend will be lower in 24 than it would have been if the deal hadn't gone through. Why? Special dividends. Pre-deal, the talk here was about how much special dividends we get this quarter. That would have amped up and it certainly would have been more the 1.5 cents a quarter. So I think there's less cash in my pocket for a few years.
But what I really don't like is the trust factor. I can hang around and spend 10 quarters watching the metrics improve and just when I get excited, whammo, here's another billion and a half in debt and we picked up 50K boe.
I'll hang in for a bit, see if I can get a bit of surge. I'm down ~ 50k from where I was 10 days ago. Looking to get some of it back and then probably step out.