wachtwoord Posted June 20, 2016 Share Posted June 20, 2016 The ticker has been changed as of this morning from AXL to AND and it is now trading with a bid/ask of $2.70/$3.45 and last trade at $3.36. Last price from the debentures including accrued interest was around $1.99/share equivalent. So a nice pop this morning and it remains quite undervalued. Cardboard The Toronto exchange says AND is Andean Resources Limited: http://web.tmxmoney.com/quote.php?qm_symbol=and Is it only the name which is not update there? Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted June 20, 2016 Share Posted June 20, 2016 The name and the shares outstanding are wrong on the TMXMoney.com site. The quote info looks correct. Link to comment Share on other sites More sharing options...
influx Posted June 20, 2016 Share Posted June 20, 2016 The name and the shares outstanding are wrong on the TMXMoney.com site. The quote info looks correct. yeah http://www.sedar.com/GetFile.do?lang=EN&docClass=8&issuerNo=00036756&issuerType=03&projectNo=02497883&docId=3939818 It is anticipated that the postconsolidation common shares will commence trading on the TSX in the next three to four trading days under the symbol AND. Link to comment Share on other sites More sharing options...
fjm222 Posted June 20, 2016 Share Posted June 20, 2016 Has anyone spoken to management about decommission liabilities? I realize that all O&G companies have these on their balance sheet but are they abandoning/shutting in gas assets that could accelerate these liabilities? I am not 100% certain on the timing of these expenses and would like to get a sense if any will be incurred in the next few years. $26mm is not immaterial for this cap structure if they have cash obligations in the near term. Thanks for your help. Link to comment Share on other sites More sharing options...
Cardboard Posted June 21, 2016 Author Share Posted June 21, 2016 If you were looking for a buying opportunity, here is one this morning. Still a bit more expensive than what the debentures were trading at or 15% higher but, that was a while ago with oil lower and now the simplified structure in place with possibility of a take-out. Cardboard Link to comment Share on other sites More sharing options...
Cardboard Posted June 21, 2016 Author Share Posted June 21, 2016 They spent $258,000 (cash) on decommissioning liabilities in Q1 per cash flow statement. "The Company has regulatory and contractual obligations to suspend or abandon certain wells in 2016; the estimated expenditure to meet this obligation is less than $0.2 million. The Company continues to actively manage and reduce its decommissioning obligations beyond the minimum required by regulation. To date in 2016, the Company has abandoned 16 gross (8.7 net) wells and may abandon up to an additional 47 gross (39.7 net) wells in the remainder of 2016 for total abandonments of 63 gross (48.4 net) wells in 2016." Based on the number of wells that they are planning to abandon and even assuming 4 times what was spent in Q1 for all of 2016, this is not a big concern. This is actually a good thing that they are speeding up this process since it is very cheap to do it right now with drillers and service companies looking for work. Also, there always seem to be takers for these low profitability wells in exchange for the assumption of this liability. Cardboard Link to comment Share on other sites More sharing options...
wachtwoord Posted June 21, 2016 Share Posted June 21, 2016 I guess my buy order could have been quite a bit lower (my bid at $2.7 was filled this morning). Link to comment Share on other sites More sharing options...
Cardboard Posted June 21, 2016 Author Share Posted June 21, 2016 Somebody sold into a vacuum of a bids. It happens once in a while before 10 am on these Canadian small caps. Now there is a good distribution of bids between $2.25 and $2.65 on level 2. However, you still only paid $25,000 per boe/d for a company in a net cash position and good netbacks. There are very few available at this price right now and none with such balance sheet. Cardboard Link to comment Share on other sites More sharing options...
wachtwoord Posted June 21, 2016 Share Posted June 21, 2016 Somebody sold into a vacuum of a bids. It happens once in a while before 10 am on these Canadian small caps. Now there is a good distribution of bids between $2.25 and $2.65 on level 2. However, you still only paid $25,000 per boe/d for a company in a net cash position and good netbacks. There are very few available at this price right now and none with such balance sheet. Cardboard Yeah I liked the price when I placed the order so I can't complain (I'm just a natural cheapskate who wants things as cheap as possible). I did place a low ball GTC order near the recent low in case this happens again to average down. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted June 22, 2016 Share Posted June 22, 2016 For what it's worth TD completed the reverse split on my shares on Monday but RBC still hasn't completed it. They did however change the mark to 2.85 yesterday with the pre-split shares which made me feel rich for a day! Link to comment Share on other sites More sharing options...
wachtwoord Posted August 16, 2016 Share Posted August 16, 2016 I averaged down today at 2.20 Link to comment Share on other sites More sharing options...
undervalued Posted August 16, 2016 Share Posted August 16, 2016 Which broker did you finally do the trades on wachtwoord? Did you actually find AND debentures on interactive broker? Link to comment Share on other sites More sharing options...
wachtwoord Posted August 16, 2016 Share Posted August 16, 2016 No sorry I bought the actual stock after it got issued: AND.TO (with Interactive Brokers). Buying the debentures was unfortunately not possible for me. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted August 16, 2016 Share Posted August 16, 2016 I bought a little at $2.20 today as well. We need a price recovery or for some of the large shareholders who have come via the debentures to put it up for sale. I'm ok with either scenario. Link to comment Share on other sites More sharing options...
valcont Posted August 25, 2016 Share Posted August 25, 2016 Sliding down on no news. Almost 30% down from its day one price wow. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted September 19, 2016 Share Posted September 19, 2016 Curious what people think of this deal? http://web.tmxmoney.com/article.php?newsid=8397239846136315&qm_symbol=AND It seems to me like its being sold cheap but the biggest shareholders are signing off on it. It wouldn't shock me if they owned the buyer too! Link to comment Share on other sites More sharing options...
sculpin Posted September 19, 2016 Share Posted September 19, 2016 Looks like a good deal & much better than the status quo. Major holders of InPlay are JOG and Sprott Resource. At a quick glance ill be a well funded, low cost Cardium producer of large enough size and liquidity to attract institutional investors. Back of the envelope valuation at $60K/boed (below other Cardium players like BNE, WCP, TVE) puts a value above $3.10 per Anderson share once the dust settles. Link to comment Share on other sites More sharing options...
Guest 50centdollars Posted September 19, 2016 Share Posted September 19, 2016 buying BXE assets http://www.streetinsider.com/Corporate+News/Bellatrix+Exploration+(BXE)+Sells+Non-Core+Asset+for+$47M/12051682.html Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted September 19, 2016 Share Posted September 19, 2016 Looks like a good deal & much better than the status quo. Major holders of InPlay are JOG and Sprott Resource. At a quick glance ill be a well funded, low cost Cardium producer of large enough size and liquidity to attract institutional investors. Back of the envelope valuation at $60K/boed (below other Cardium players like BNE, WCP, TVE) puts a value above $3.10 per Anderson share once the dust settles. Fair enough, but AND shareholders are getting less than $30k/boe/d for their Cardium production, aren't they? Link to comment Share on other sites More sharing options...
wachtwoord Posted September 20, 2016 Share Posted September 20, 2016 Did I understand correctly they are only paying $2.30 (in shares)? That's outrageously low right? Link to comment Share on other sites More sharing options...
valcont Posted September 20, 2016 Share Posted September 20, 2016 The deal makes sense. They bought 900boed at $50K/boed from Bellatrix. That one has a much higher netbacks (75% oil and liquids) . They have been reporting about 42% oil and liquids on about 1700boed which should be priced between $30-35k/boed(maybe lower). With 17.7 million shares outstanding ,I get the price per unit between $2.30-$2.40. Link to comment Share on other sites More sharing options...
Cardboard Posted September 20, 2016 Author Share Posted September 20, 2016 The "premium" paid or our stake (%) in the new company is too low being the main disappointment. However, I agree with Sculpin that something needed to be done. Anderson was a debt free producer with some cash and good netbacks. However, it was heavy into natural gas with only 42% being liquids and Q2 revenues were weak as a result. Decline rate was high. SG&A was really high on a per boe basis. PDP NAV is around $2.40/share and 2P NAV around $3.80. So with their history and these numbers, getting much more than $3/share was being optimist. This management team has essentially wipeout previous shareholders. None of them is being retained and that is a not an insignificant sum being paid as severances. This deal improves the company on every metric except that it will now carry some debt but, a very respectable figure. Now being mostly a light oil producer with first quartile decline rate means higher valuation. If you look at all recent deals and price paid, light oil and low decline rate are key. So I think that we will get AND past fair value plus some more. Call it $3.50/share. So no real premium on the sale but, a reasonable path to unlock the value that we saw before which may not have happened under current energy prices. The original thesis called for someone to acquire Anderson on a share exchange to de-lever their balance sheet and that is what is happening. Cardboard Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted September 20, 2016 Share Posted September 20, 2016 Anyone have an idea how the inplay financing is going? Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted September 22, 2016 Share Posted September 22, 2016 There seem to be some bids showing up on AND so maybe fills have been handed out on the InPlay sub receipts. It can still be bought at a decent discount through AND. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted October 19, 2016 Share Posted October 19, 2016 Financing is done at $2.30 and stock still offered at $2.15! I imagine when the deal closes in a few weeks we'll see a string of buy recommendations from all of the dealers involved. Link to comment Share on other sites More sharing options...
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