RE:purchase price looks goodI listened to the analyst calls, and they said WestBrick is actually producing 57,000 boe/day. So production is understated in the deal metrics.
VET is going to be looking at some potential divestitures, to accelerate the debt reduction, this is a boat load of land with WestBrick, and over 100 mmcf of gas processing. They suggest they will be trading at 1.5 debt to trailing FFO. VET expects yearend debt to be 1.8 billion.
VET has a lot of partnered wells with WESTBRICK already, so they likely had a big advantage in this bidding process.
With no additonal shares being printed, it will result in even higher FCF on a pershare basis, and FFO on a per share basis.
Vet already had great numbers for FCF per share, this should make it better.
This does make them significantly bigger.
IMHO
MHP