RE:RE:They Prepping for a buyout?RookieReturns wrote:
"POU probably loading up for a purchase of their own. That said, NuVista would have been an excellent acquisition but perhaps they are trying to bolster their position in the Fox Creek area where they already have a number of assets?"
As to the middle part of your statement, you're absolutely correct! Nuvista for Paramount was the ONE where they had the most synergies with and made ABSOLUTE sense for them to merge, creating a bigger & better version of their respective individual parts.
With regards ot the first part of your statements, it's HIGHLY doubtful imho, that they are "loading" up for a somekind of purchase of their own. Especially after divesting of major assets in Kaybob over the past two years. You don't SELL decent assets just so you can turn around 12 months later & buy other ones just a few miles away. That's like changing a buck for four quarters and imo it doesnt make any logical sense.
And to be quite frank, IF they wanted "other" assets to load up, they already had a good portion of NUvista's interest in their hands, and they could have easily mopped up the rest. But they opted not and decided to start liquidating that as well. Doesthatsound or look like someone who wants to load up on more assets through some M&A? Probably NOT.For me, it sounds, looks, acts & walkslike something that wants OUT.......so asthe saying goes "if it looks& quackslike a duck, it's a duck"!
So what will most likely happen here? Look for a MUCH bigger company than them, like an Arc Resources to take a closer look at Paramount and maybe make anoffer for them. Arc looks hungry, Paramount looks exhausted & wanting to EXIT...........IMO
GLTA