RE:Joint VentureThe JV announcement made the share price go up. That resulted in some immediate upside for me. Some analysts have already bumped up their ATH target price. They must see the potential benefits.
If management wants to make some extra cash running two companies instead of one, good for them. With a share price appreciation of almost 75% so far this year, ATH management deserves a big raise. Their master plan to buy back shares, hoard cash and not pay a dividend seems to be working. I have no complaints.
I am sure an IPO of Duvernay Energy is their long term plan. It makes zero sense to rush into offering an IPO today before these prolific long life assets have been drilled and proven. These assets will be worth far more a couple of years from now.
Instead of your theory that the piggy bank was raided, how about this new company is like money in the bank for ATH shareholders. 70% of any excess cash flow will be retuned to ATH and 70% of any future IPO shares will be owned by ATH and its shareholders. This is not some shady side deal. It is a great long term investment that should generate lots and lots of free cash flow. A secure source of condensate produced by Duvernay Energy will also come in handy for both ATH and CVE for their SAGD expansion plans.