TLM is selling its interest (12%) in the oil pipeline along with two other owners, which together total maybe 25%+/- of the pipeline. I believe the $1.1 billion is probably for the entire 25%. TLM was hoping to receive $600+/- million from the sale of its interest. I'm still waiting for the 50,000 gpd (net to TLm) of oil production from Columbia that was a goal when it bought out BP's interest in Columbia with the Columbia National Oil Company a couple years ago. TLM still has a lot of work to do in this regard. What is interesting the sale price of the pipeline is close to what TLM paid for its interest in the BP assets. The pipeline was part of the BP assets that were purchased.
AEO preannouced after the ANF news, but ARO is strangely quiet. Upcoming earnings and guidance will be bad. They have been burning cash and will continue to do so. Sycamore will wait patiently as the stock continues to drop and then make a move early next year to buy this on the cheap. No double here. You may be lucky to get $9. It will be interesting to see what happens.
Over 1/2 of their production is linked to oil prices and it still can't make any money. Why not? They are still spending on capex at levels that exceed cash flow. Why not cut these back even more? They seem to get little in terms of return on any money spent on capex. Your thoughts?
Unfortunately, I don't think you will get anywhere close to $14+ per share. Having lived through the Talbots buyout process with Sycamore, Sycamore will try to pick up ARO on the cheap. Sycamore will wait for the next poor earnings report to push the stock down and management's gets pushed back further into a corner due to the upcoming challenging Christmas season. My guess is maybe $12 if shareholders are very lucky.
Says who? What is the source of your information? Management said it would not split the company up at the investor conference in New York earlier this year.
Agree, but it may take until next Fall 2014 to really see the full results of the changes started by the new management team take hold and show up in the operating results. Their new management team seems to be making the right changes to improve the business.
My hunch is it might have been a positive research report from one of the analysts that follows the company. Hopefully the new management team will start to show improved results by the end of this year.
Maybe Marathon Oil (MRO) will buy TLM's Eagleford's assets. MRO just announced it is selling its stake to Sinopec in an Angolan offshore oil block for $1.5B. MRO has a big Eagleford position right next to TLM's acreage.