Post by
Cheadle12 on Mar 11, 2021 6:24pm
Riddle me this..
I think it's pretty clear what Kelt's strategy is here. We can debate about it and that's great, but here's what I think.
Oak is a keeper.. they're developing this asset. Drilling & will build out, this is a gem, their crown jewel (in the same way Attachie is to ARX).
Wembley generates excellent FCF, so this is the other half of their drilling.
The rest.. it's non-core.. I think AAV will be acquiring as AAV's balance sheet is superb, they've been flat and their assets are hand in glove with Kelt's.
So they'll sell the non-core to AAV & they'll put that money to work at these commodity prices to building out the two main assets.
Offer an opinion on why this won't happen? Or agree... keen to hear the thoughts here all.
Comment by
geologist77 on Mar 11, 2021 6:59pm
The value of what someone is willing to pay for montney undeveloped land and what it's potentially worth in a rising commodity environment will make deals very hard. The distressed situations are gone for the most part, with the exception of some privates looking for liquidity. Congrats on the nice move today kelt. The market is very hungry!
Comment by
smocher on Mar 12, 2021 8:35am
Certainly dovetails with my thinking, cash is king, AAV can access it better than KEL