Post by
Quintessential1 on Jan 28, 2024 5:26am
The Best Defense is a Good Offense
I wonder if the strategic initiative has considered acquiring rather then being acquired.
It looks like RZE is floundering.
Is there any chance of GXE picking up 50% more production for say 4x GXE's debt?
(mostly RZE's debt)
If they could get them cheap enough it could be very accreative say $20,000 per BOE
(lower than the going rate but beggers can't be choosers right?)
GLTA
Comment by
tylerreddick on Jan 28, 2024 7:33am
Who is the ridiculous one now?
Comment by
Quintessential1 on Jan 28, 2024 10:00am
Well I am guessing that you think its me for asking a question but I am pretty sure it's still you. GLTA
Comment by
Roscoe747 on Jan 28, 2024 12:17pm
That's a good point, Quint. The terms of reference for the SI indicate all options will be considered and an acquisition saves GXE insider jobs at the expense of the acquired jobs in a forced sale. GXE realises that it is too small and debt up to, say 1XCF is managable with increased CF from 8kbbl/d.
Comment by
tylerreddick on Jan 28, 2024 8:22pm
So much for the dumb idea of GXE buying that mess.
Comment by
Roscoe747 on Jan 30, 2024 5:09pm
AFIK, AIMCO STILL OWNS 47% of Razor's shares. Razor had $500k in LTD but $127 mm in current debt before AIMCO took the FutEra deal. It still leaves Razor with $55 mm of current debt owed to suppliers, not banksters or other financiers. Razor also owns Blade, a dirt contractor, whom, if it works for Razor, raises all sorts of related party issues.
Comment by
tylerreddick on Jan 31, 2024 3:48pm
" They have seemed to have repaired their cash flow issue " Quint, do you ever take a few minutes to actually read the monthly reports? It sure doesn't seem like it. Try it, you might be surprised what you learn.
Comment by
Roscoe747 on Jan 31, 2024 4:04pm
Why don't you try poropsing some original analysis rather than critical drive-by schmidtposts on the efforts of others, tyler.
Comment by
Roscoe747 on Jan 29, 2024 12:16pm
A forced sale will leave the debt holders holding the bag as well as the share holders. It doesn't matter what Razor's metrics are if an accretive deal is approved by the court, or, more likely, the debt holders. The question arises whether Razor's woes are self inflicted, systemic or structural and whether any solution is accretive to the potential purchaser.