RE:RE:Enerplus gone....WCP next?Westcoastenergy wrote:
"Interesting, on the ARX board, there was a discussion that Canoe Financial seemed to indicate that ARX might be in play soon...."
ANYTHING is possible, but that is highly unlikely imo. If you read my previous posts on this board, you'll understand why. Arc is notorious predator in terms of M&A, and it's highly doubtful they've got some exit plan at this stage in the company. Maybe in a few years it may happen, but i don't think the timing is right for that now. Nothing tells me this is the case and just don't see it.
And for arguments sake, if that were the case, who would have the financial capacity to make such an investment/move? The short list is probable VERY short and only comes down to other predators like Canadian UnNatural & Tourmaline. Both of whom are notorious Scrooges in their own right when it comes to acquisitions. So NO......the odds are VERY low imho.
"As a holder of both WCP and ARX, I just don't see ARX going after anyone at this stage. They have way too much on their plate already. Lots of development to do."
Just because YOU don't see it doesn't mean others can't or it's not possible. That reasoning of yours is EXACTLY why Arc is compelled to delve into the M&A scene much more than before. At "This Stage" they are at .......compared to their peers, on a global North American scale that is. So if they wish to stay competetive with the likes of Suncor,Canadian UnNatural, Cenovus, Tourmaline & of course their US counteparts.....then they NEED to get much bigger than they currently are. And for me....and them......WCP is a perfect fit and they have everything Arc would want in some possible M&A acquisition. They got the word BIG written across their forehead in every possible way.......as i explained in my previoius posts.
So if anyone is at a inflection point or fork in the road, at this stage in the game, it's Whitecap and their mgmt. Are they gonna join in on the M&A buffet as predator, as they've been for the last few years or as a target themselves? Are they ready to hang it up? For this it's WCP who's in question not Arc.....
That's MY two coppers worth......
GLTA