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PWE - Penn West Petroleum


alertmeipp

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Very good work gentlemen.

A lot of people, in a lot of places up and down Alberta, are very thankful to you.

 

Once the dust settles, we think the following things should become pretty evident.

1. Debt has begun the terming out process. We would not be surprised to see a MTN program with proceeds reducing the lending syndicates position. Hopefully, CAD 150M+, that uses some of the aid money available, and makes the new covenants redundant.

2. Alberta o/g development becoming more stable, and improving economic conditions for everyone. As OBE is the biggest land owner in the Cardium, stabilize OBE today, and you boost the confidence of all those connected to these fields. At a time when it is really needed.

3. US 30/bbl oil isn't going to last for long. When prices return to 'normal', OBE is going to be showing sustainable +ve eps, and +ve cash flow, for the first time in literally years. Hopefully, everything over maintenance capex goes into debt reduction, so that we have the CAD 47M in hand to pay the Nov 2021 maturities off in full.

 

Congratulations.

 

SD

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  • 2 weeks later...
  • 3 weeks later...

CNBC claims something went off at one cent, which means somebody is sitting on a 30 bagger for about 2 minutes of hold. Trying to figure out the IRR on that but excel keeps crashing

 

Good for that trader. How many other traders just blew up, though?

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Does anybody have already have a spreadsheet filled out telling us what the breakeven negative price is for driving down to Texas with some empty perrier bottles??

 

Home Depots in Tx have sold out of 5 gallon buckets. Somebody is going to make a killing off this, there's gotta be some excess storage capacity somewhere.

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Does anybody have already have a spreadsheet filled out telling us what the breakeven negative price is for driving down to Texas with some empty perrier bottles??

 

You drink perrier ? Someone is fancy...

 

;D ;D ;D

He keeps the empties? Someone is weird...

 

I kid.

 

Edit: It's a sound investment decision. Perrier empties are more valuable than Penn West stock.

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  • 2 months later...

Happy 4th and hope is well and healthy!

 

BE ON NOTICE

 

Obsidian Energy's proxy is out.  Read through this scam, these guys intend on taking this company private just like what happened to Bonavista, shareholders received $.05 per share just like Pengrowth. Why do we still have 8 directors for a worthless company based on market cap. Why make the changes if you don’t intend on using it, shady. Something is brewing and these clowns are setting themselves up for a huge payout.

 

Be on notice, that Dr. He our largest holder, 10% of shares is officially voting NO to compensation and all directors.  Along with him, I am part of another group including institutional holders that hold another 10%.  With only 40% vote turn out last year, we have enough shares to stop this!  We need your help and encourage you to vote NO to compensation and directors.

 

Please reach out if you want more detail or contact information for our well organized group including Dr.  He.

 

The time is now!

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Happy 4th and hope is well and healthy!

 

BE ON NOTICE

 

Obsidian Energy's proxy is out.  Read through this scam, these guys intend on taking this company private just like what happened to Bonavista, shareholders received $.05 per share just like Pengrowth. Why do we still have 8 directors for a worthless company based on market cap. Why make the changes if you don’t intend on using it, shady. Something is brewing and these clowns are setting themselves up for a huge payout.

 

Be on notice, that Dr. He our largest holder, 10% of shares is officially voting NO to compensation and all directors.  Along with him, I am part of another group including institutional holders that hold another 10%.  With only 40% vote turn out last year, we have enough shares to stop this!  We need your help and encourage you to vote NO to compensation and directors.

 

Please reach out if you want more detail or contact information for our well organized group including Dr.  He.

 

The time is now!

 

Time for SD to reactivate some friends in low places to help out breaking some kneecaps if he still want to get his cabin in St. John.

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20% (minority interest), a failing campaign, and selective disclosure, is not going to change the outcome.

No need for the 'associates'.

 

A 'take private' would have already occurred, were it going to happen.

Mar-2020 OBE was trading at CAD 0.25/share, or CAD 18.25M for the company. July 03, OBE closed at CAD .58/share, or CAD 42.34M for the company. Q2 saw successful conclusion of a number of very good outcomes. Significant aid related refinancing is expected in Q3. The train has already left the station.

 

The whine is the 10% option acceleration, should there be a takeout - takeout EV divided over roughly 85M shares, versus the existing 75M (inclusive of options). The current cost of the options is well under 2M, and reflects progress since 05/2016. To some - performance has been terrible - those bums should get nothing! Whereas the company should have been bankrupt a few times over, is currently worth CAD 42M+, and is well on its way to bigger/better things. Spin.

 

We pay a real estate agent, a sizeable commission, to sell a property. Get a higher offer, and get a higher commission payout - the 10% option acceleration is no different. There is no acceleration unless there is an offer, the agent (option recipients) is incentivized to get the highest valuation possible, and there is strong incentive to accept share comp versus cash (higher the price, the bigger the buyers equity issue can be, at a time when the public market is closed).

 

Should the dissenters fail, a number of shares should become available  ;)

 

SD

 

 

 

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Compare the Q1 and Q2 2020 announcements to peers - OBE has outperformed. I can cherry pick dates too.

The reality is that Loukas and his team have done a solid job, and this is part of their comp. Sure it would have been cheaper to just pay upfront in cash, but that is not today's industry reality. They get paid later instead, and paid more for bearing the business risk - that is just the cost of doing business. However - if the issue is actually as contentious as claimed, it is highly likely that the other shareblocks will be voting as well.

 

The takeaway is that a takeout IS expected, and sooner rather than later. It is why we have the whining. We will have a further confirmation of the expectation; should dissenters fail in their bid - and there is NO subsequent sell down of their position.

 

The typical pre 'take-out' premium is 10%, and it's essentially going to insiders to 'make it happen'.

Hard to be 'upset' with this.

 

SD

 

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So we have to bribe the insiders to take a good deal for 90% shareholders?  Insiders that own 10% only. 

 

And bribe on speculation of a takeout.  So if the take out does not happen, oops, they still dilute us.

 

Sounds good to be an insider. 

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