Veren Inc T.VRN

CPG & Shell

[filefish]

Saw the same playbook written at Athabasca - Equinor. Didnt work out so well there. Despite the apparently nice metics of this transaction for CPG at $50WTI , I am disappointed that they have put themselves back into a scary debt condition. They have changed their deleveraging policy and are gambling again on Poo . Saxberg all over again.

[cahclick]

I agree with you. In my opinion this purchase goes against the company stated objective of sound fiscal guidance. This purchase seems like a Hail Mary move. Bryscuit will look like Einstein if oil goes to $75 and Homer if it goes to $45. Both are totally possible. In addition to taking on another $700 million in debt they are also washing out shareholder value by adding 10 % (50,000,000

[Marty57]

I agree the deal for Shell's Duvernay asset has some risk to CPG, and probably most of that risk deals with oil price.  IMO the risk is a good one and maybe a necessary one. One nagging concern I had with CPG is they didn't seem to have an early stage asset to provide a large inventory of economic prospects for development.  They need such an asset as CPG's existing core