RE:RE:Might be time to revisit a OBE/BNE merger...Inggasfor202324 wrote:
"Obsidian has the bluesky to spend their money on with a lot of good areas to drill. That would be a bad idea in my opinion. I want them to do it organiclly with their top land holdings."
Nobody has "bluesky" dollars tp spend in this sector, except for Canadian UnNatural & Tourmaline and maybe one or two others. Definitely NOT any of the mid caps and certainly not small caps like Obe & BNE. Energy prices afre too low for Canadian operators, even with wti at $70. Most Canadian operators need $75-$80 to be viable....some even higher. Let alone where NG prices are trading at right now.....
As for OBE-BNE merging being a bad idea, i would expect this for someone who is inexperineced & not the most knowledeable to say something like. No offense meant to you btw, just being a realist. Was Crescant Point mgmt stupid when they bought both Spartan & HammerHead? Was Arc stupid when they bought SevenG a few years ago? Was Suncor's purchase of Total's interest a bad move? I could go on & on & on here.......but i think you get the picture. There's some massive M&A happening for a few years now for a BIG IMPORTANT & VALID reason. Even more so on the US side........Are/were they all stupid & bad ideas? Or is something really pivotal going on and has been going on for a few years?
As for organic growth, it cant be the only way for a Canadian operator to get bigger. In this time& age, where there's been a huge paradigm shift, several actually, JUST organic growth just doesn't cut the mustard anymore. You need more, much more and much quicker & cost efficent progression as well. And that comes with asset acquisitions and M&A of peers/competitors. Organic growth was KEY in the 80's, 90's and in maybe in the early part of the 2000's. But after that things chnaged! And those that didn't adapt and chnage along with it .......disappeared & were forgotten.
Today M&A is even MORE crucial.....i mean seriously......just look at what the American side has been doing for the last decade......Now super majors are eating each other! The Canadians are so far back, compared to the Americans, about a decade behind on this front, it's NOT even comical.
I hope this explanation makes it more clear.....
GLTA