Yangarra Resources Ltd T.YGR

absolute steal by Peyto with the Repsol takeout

[Flush11]

lots of land west and north of YGR in this acquisition. what a great price. They paid PDP after the assets had no drilling  for about 3 years, which dropped the decline rate dropped to 12%. A great price and a cogen was thrown in. Hopefully they sell off some bits to the cardium players.


https://ca.finance.yahoo.com/news/peyto-announces-strategic-acquisition-concurrent-203900635.html

[cfliesser]

PDP isn't that cheap! YGR trading at around half PDP right now

[TheRexmember]

YGR is in the show-me penalty box. As in show some mgt competence and show the acreage is worth something. So it is definitely cheap. The question is whether it is a bargain or a value trap. Maybe Q3 will show some decent numbers.  Generally for a takeout PDP is a pretty good price. Usually at the top of the market in the past companies were bought out out at 2P or higher. The other

[nearpeakfreak]

So equating what Peyto paid on PDP would imply a $3.60 or there abouts share price for Yangarra and that is before the Chambers area reserves which are not included. More than likely something over $4.00 would be realistic.     I think that was a great aquisition for Peyto and I have always wondered why someone was not buying up all these undervalued and unloved small cardium producers.

[TheRexmember]

You would have to adjust for the discount rate - they used 5% which was a bit low on the Repsol deal.  then adjust for decline rates. YGR has dropped it a little, but Repsol was at 12% where Yangarra is probably 27-30% well down from close to 40% to whatever it is now.  Then add facilities and deduct ARO. Because YGR would have better ARO.  probably some tax pools at Repsol.

[kavern23]

YGR best bet right now to ever get bought out is a private company like Westbrick or Bonavista or Taqa wants to get listed back on stock exchange again, ie like strathcona with pipestone. YGR gas plants would work for Bonavista. I think Bonavista has glaunconite zone right on alot of YGR land.

[Hendrick3]

The sector average for valuations is about 130% of PDP so peyto got a deal but ygr is crazy cheap. I think pdp NAV is $4 per share for ygr. Ygr is very unloved 

[kavern23]

And Peyto would have had likely TOU bidding the Repsol assets up. Repsol assets were a decent fit for TOU as well. Not saying it was a bad move for Peyto as so many economic zones in deep basin to fill the gas plants and NG is there but one negative with Repsol assets is you get alot of single vertical wells that produce just enough to stay producing. These type of wells are great with high ng

[TheRexmember]

Must be the management transition that has upped the M and A at Peyto.  You are right on about technology. They didn't chase much new tech at Peyto or BNE for that matter. They have some cheaper ongoing op costs because of it and don't waste money very often. But some really efficient pads here and there would have been really profitable. I think Peyto put out an actual news