"I think that the recent declines in pps forced KWK to make this announcement a bit too early."
I agree, a show of force.
Mgmt wants to protect the negotiations currently underway, re HRB and debt refinancing.
The Permian is a major growth driver for many O&G producers.
So, statistically, the odds of the same for KWK is excellent.
"..I have said it before...they are very rich now and they can wait till the deal they want comes along"
I've always had the impression from GDarden's tone of voice iñ CCs that he wasn't overly worried. Perhaps he knew that the Permian is his ace in the hole.
"Use capital from TG to by Apache BC assets "
Darden, in the Q2 CC, did talk about potential acquisitions.
Hmmm, it they do, indeed, acquire APA's HRB/Liard acreage, we'll likely end up with a grand slam.
There are many possibilities where private parties are concerned. I'm not quite sure how the Japanese government fits in---grease the process with cheap capital, tax breaks, facilitate permiting, etc for Japanese companies?
"Which trend?...........or the longer one from $80 to $10?"
Sunsets frighten messnervan---he thinks the sun disappears never to rise again.
Seriously.....it's just amazing these shorts simply will not entertain the possibility of a turnaround--even given encouraging metrics reported over the past 3 quarters.
Brings to mind memories of how Apple came within a few months (ie, literally no cash) of bankruptcy/liquidation in the late 1990s. That's when they brought Jobs back.
1. Electricity generation to meet power demand--A/C, etc. (and, heating in the winter)
2. Feedstock into the petrochemical industry: plastics, fertilizers, resins, etc.
1. "Apache May Sell Western Canadian Shale Gas Assets", 7/31/14 WSJ report: APA looking to sell off its HRB/Liard Basin NG properties + exit its Kitimat LNG project with Chevron. The HRB + Liard Basin properties contain huge reserves--see APA's website which describe wells here as most prolific in the world.
Like many other E&P firms, APA is simply refocusing on oil/NGLs--pretty straight forward.
2. "APACHE CANADA, CHEVRON CANADA ANNOUNCE JOINT VENTURE FOR KITIMAT LNG PROJECT, 12/24/12 APA PR: Describes partnership deal not so long ago. Part of this deal involved Encana and EOG Resources exiting this joint venture with Chevron, cutting back their exposure to BC NG/LNG.
1. The bad: APA's decision to exit BC is a large factor in the recent plunge in KWK shares--ie, market fears that APA's divestiture poses competition with KWK for a deal, potentially depressed selling prices, etc.
2. The good: the number of companies in the NAmerican NG/LNG sector has diminished in the past ~ 2 years. In this sense, KWK should be in a better position to assemble a JV deal--less competition (although low NG prices remains a handicap in valuations). It may even expand the scope of a deal to include purchasing additional acreages--APA's Liard property is very well characterized and extremely prolific.
Speculation: Japan may see this all as a golden opportunity to make strategic investments (up, mid and downstream stakes) in BC NG, lock up decades of supplies, while prices are low.
Is this the reason for the recent tour conducted by KWK for the Japanese delegation?
What is the value of the Permian and HRB holdings reported as on the balance sheet?
ie, Has KWK sufficiently characterized these assets?
You're very knowledgeable about the shipping industry--I appreciate your posts.
If you don't mind my asking--what is your background?
Sure, you can undoubtedly save a few bucks. But, what portion of clothes shoppers are like you?
there's opportunity costs from running around, and the savings for most folks are likely marginal. Most working folks are too busy, too tired, to run around. Time much better spent, relaxing, socializing------or, researching an investment for a return that dwarfs the marginal returns from your style of shopping. Then, there's the time lost from returns and re-placement purchases----for me, one experience and the aggravation would be a permanent cure of the need to save a few bucks.
How many people are like you--ie, what market share?
Your tactic is very time intensive, and there's an opportunity cost. Most working folks just don't think the marginal benefit of running around provides a good return.
Thanks for the reference to SEDAR.
I understand that the company is Canada based (tax and legal purposes), though its functional office is in Houston. Toronto listed shares do trade with higher volume, though are also illiquid---ie, you can't place an order of even modest size (e.g., 5000 shares) without moving the shareprice.
I agree this stock is interesting.
However, the shares are highly illiquid. Too, the company's website doesn't have the latest quarterly earnings report nor update info.
Anyone beside me concerned?