Post by
retiredcf on Jan 30, 2023 11:08am
Analysis of Acquistion
A long term investment but certainly looks promising. Added a few more on this morning's weakness. GLTA
Wow, a $500M deal is huge for SOIL (market cap $152M). Ridgeback is private, and adds 17,000 b/d of mostly light oil. Operating income of $311M and free cash flow of $228M look very good considering the offering price (just above 2X cash flow). Proven plus probable reserves are close to 100 MMboe and it adds 700 drilling locations. While an 'agressive' deal, it moves it up the market cap ranks, nearly doubles production, and looks good overall. Debt is going way up, though, for the short term. But we would agree this is a transformational deal and we think ultimately will turn out well. (5iResearch)