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Western Refining, Inc. Message Board

  • dalerobin777 dalerobin777 Nov 4, 2010 1:44 PM Flag


    Any more informed than me posters have any oppinions on a buyout odds ?

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    • If you look at ther 3rd quarters' expenses, you don't see a big jump in the line where they would plug in litigation expenses. They had a lot of lawsuits from the Giant acquisition and the EPA has had some things they wanted done, but you don't see a huge liability being written off.

      There have been some impairment charges, but then if you went back and added up how much it would cost to replace all their assets and the permitting process, one has to believe they are on the books for a lot less than that depreciated values but it always, it comes down to the spread between crude costs and whether they are hedged favorably and the increasing pricing of the end product be it gasoline, diesel or others. The market seems to jump all over these stocks when they see end prices rising.
      The $700 million market cap seems low even when you factor in their debt and values for A/R, A/P, CASH and other short-term netted out values. And, there is also a new sector speculators are looking to jump into when they get tired of the current ones.

      The price sales ratio is around 15%-something wrong with this picture? Maybe the stock price is too low? Some of the big boys are looking to sell off their refineries, but then they have overseas options the smaller US refiners don't have. Many of the big guys totally missed the shale oil and NG plays in the US and are scrambling to buy in. What if they want to sell ethanol or NG at service stations? How much would it cost to buy up WNR's group? All you have to do to sell those, is dig up a chunk of the parking lot, bury some tanks and start selling the product. If Congress can put through the right legislation to encourage the sale of NG in cars, those stations WNR have will be worth a huge amount. Just think how much money they can make if they start selling their own domestically produced through their own service stations.

      Why do you think XOM bought XTO? Do you really think they wanted to sell NG to homes and industry at a loss of $ 2/mcf., which is where the pricing brings you when you plug in all the costs of acquisition, drilling, developing and transmission.

      How much can a NFG-National fuel gas make if they sold their NG from their 720,000 acres of Marcellus shale into the NE market, when the price of NG is 25% of oil-are you kidding? The big three auto makers already make NG values overseas. I saw a Dodge Van that was 16 years old a couple of months ago and it had a factory NG engine.

    • who filled your head with such nonsense and lies ?

      why do you think there is even a chance of a buyout.


    • Probably buyout like NEVER, Sport!

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