RE:RE:New Kelt Drinking Game!Sorry, my memory addled by watching the market too long, listening to too many calls (not to mention the drugs and alcohol) was wrong. I'm pretty sure it was PIPE who said that about owning processing diluted shareholders from holding pure O&G shares.
In a way I understand that argument: contracted infrastructure has a higher value that isn't recognized if the equity trades at th enew normal for O&G. Just have to look at all the magic value TOU instantly created by spinning out TPZ to see how value can be lost by paying for infrastructure.
But using third party infrastructure raises opex and hits netbacks for zones that are primarily gas. I think focusing too much on $ per flowing barrel on the CR transaction doesn't properly include how much value owning some processing was in that transaction and the synergies with TOU.
PIPE also ran into problems and got stolen. I'm interested in the transaction because I think it's likely that Strathcona has to do one or two more transactions like that to allow Waterous to get enough liquidity to lighten their holdings (they have 90% of SCR right now). Think KEL would be an interesting target for them giving their PIPE acquisition.