Post by
JackDeeValentin on Jun 22, 2015 12:05pm
need to look at valuation of buyers ARX and WCP
With ARC Resources trading at 12X EV/DACF and Whitecap trading at 11.2X EV/DACF these companies can acquire RMP (trading at 3.9X EV/DACF) and make acquisition very accretive at $6, $7 or $8 per share by simply utilizing their lower cost of capital.
RMP offers other intangibles and value to a buyer in the form of some of the best undrilled locations, low debt balance, investment in infrastructure and a large tax asset.
Comment by
robt1234 on Jun 22, 2015 3:00pm
You can definitely add RRX to that list of companies with high share price valuations looking to buy. The Pres admitted it on BNN last week.