T Boone Pickens (BP Capital) has announced that they have purchased over 7,000,000 shares of VPI as per their SEC filing. This was yesterday and there has been little notice on this board. Shares were purchased from $9.00 to $14.00 per share. This makes T Boone Pickens a +5% shareholder in Vintage, hence the required SEC filing. Apparently few people that follow VPI read this board any longer. If anyone knows if the discussion of VPI stock has moved to another board, please advise. -- It appears that T Boone is looking at a leveraged buyout, but stock prices have gone down since the filing. What gives
Pickens Returns to Takeover Role at Vintage Petroleum (Update1)
By Miles Weiss
Washington, March 25 (Bloomberg) -- T. Boone Pickens acquired an 8.4 percent stake in Vintage Petroleum Inc., reviving his role as one of the best-known corporate raiders in the oil and gas industry.
Pickens, the 73-year-old founder and former chairman of Mesa Inc., said in a regulatory filing that Vintage is undervalued and that he may seek to take over the Tulsa, Oklahoma, energy company. He also said that Vintage ``may or should be'' for sale or a candidate for a leveraged buyout.
Investors have provided about $125 million in capital to a pair of Dallas-based partnerships that Pickens is using to make investments. The BP Capital Energy Equity partnerships, formed late last year, are a vehicle for Pickens to make money through his expertise in oil and takeovers.
``The purpose of the partnerships is to invest in public exploration and production companies which are undervalued in our opinion and which we think may be involved in sales transactions,'' said Robert Stillwell, partner and managing director at BP Capital.
Earlier this month, Pickens disclosed a similar investment in Penn Virginia Corp., a Radnor, Pennsylvania, producer of oil and gas. BP Capital said it might also seek to acquire a majority of Penn Virginia's outstanding common shares.
At Vintage, the BP partnerships spent more than $75 million to acquire 5.3 million common shares, according to a Schedule 13D filed with the Securities and Exchange Commission. That works out to an average price of $14.19 a share.
-- It appears that T Boone is looking at a leveraged buyout, but stock prices have gone down since the filing. What gives
Michellich: I think the answer is "he" stopped buying. Not trying to be funny but if he had not started buying VPI would be selling in the $10 to $11 area. I believe for reasons stated in 35286 and more to the point Taylords 35305 explains a great deal. I would be more concerned about VPI's response. If you note in the article they tried to reach management "Vintage Vice President Robert Phaneuf did not immediately return a call seeking comment." This is another reason why few have gotten excited lately. Poor IR communications.
Let's face it VPI's timing on the last acquisition was also questionable. All in all hard to get excited. Just hope Picken's has picked a good one. Csense
AT: I'am sure BP Cap is looking at the value per BOE but right at this time it appears that a lot of baggage comes with it. Thus the market is not excited. Nothing that time can't cure but as another posted stated their are a lot values out their without the baggage.
Leveraged buyout????? Who would finance it? VPI is currently over leveraged with $1 billion in debt(JMO). 37% of the proven reserves are in Argentina. Bankers couldn't leave the counrty. The rule of law has been thrown in the gutter like so much sewage and offal. Another 11-12% of the reserves are gas in Bolivia and find little or no reasonable market. VPI is an interesting value play if Argentina gets its act together.... but I have seen none of the necessary fortitude, guts, or determination in Argentine leadership. Instead they talk about accounting gimmickery, deferals, and new taxes on foreigners and their assets. As a VPI shareholder, I wish T. Boone luck but I wonder if he's lost a few marbles. Just one investor's opinion, and I've participated in a number of LBOs.
So busy last night trying to steer the tankers through the fog that I forgot to respond to you!
If Pickens has purchased 8.4% of VPI at prices ranging from $9.97 to $14.23 (let's say a midpoint average of $12.10), why do you wish him luck?? Looks to me like he's already made 14% or so in less than two months on a rather large investment!
The WSJ today carried an article about Argentina. I didn't read it as I am not that interested in that country, but the giste of the Article is that they are seeing a worsening of their economy today.
Clearly the market does not believe that a buyout is going to happen and that the sale price of VPI is not that high. Clearly the purchase of such a large stake in the company by a non-long term holder has the market wondering.
What is the buyout price of VPI????
I think there are several companies in the E&P sector that are candidates for an LBO. Any company that has some growth in production and reserves (with potential), and selling for 5 times cash flow is an exellent candidate for an LBO.
I don't think VPI fits that category. Too many of its assets are in questionable foreign locations. The only way a deal could be structured would be if there was a deal in advance to sell the foreign assets at closing. And they just won't fetch much now!! BP has been wrong before!! JMHO!! Regards.