RE:RE:RE:RE:RE:Irons in the Fire ,... 77% UPSIDECrew significantly increased their condensate production year over year to 21% of total production (ARC Resources was 22% in Q2). The acquisition metrics are similar to what ARC is valued at currently on a per boepd basis. In addition, Tourmaline gets Groundbirch - a quality gassy play albeit mostly undeveloped - as well, Crew shareholders get no immediate tax effect, dividend income and the upside from Tourmaline itself. Tourmaline paid a fair price for a good company.
Kelt is probably a few years away at both Wembley and Oak from being in a similar position (doubt there's going to be a lot of interest let alone paying a premium for Pouce Coupe, Charlie Lake Spirit River, etc..).
One of the messages from this transaction is that oil/condensate is highly valued, dry gas not at all. No surprise when the price of oil in Alberta is 25x the price of natural gas.
The fundamental problem of natural gas is the same in both the US and Canada: untapped potential for significant production increase (Murphy boasted in their Q2 earnings call that they could double - already .5BCF - their Montney NG production with plant addition - just that the local market AECO couldn't take it).
In natural gas, you either produce lots of oil/condensate, are attractively hedged/marketed, head of contract for LNG anything that boosts income because there's no money in that commodity itself.
A very good deal for Crew shareholders. Dale Schwed did a great job ramping up those condensate volumes in short order...