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Range oil sold
Posted: Tue Feb 28, 2023 7:39 am
by Fraser921
https://seekingalpha.com/news/3941645-b ... 44.36share
Dan your valuation was 74.00. Either they sold too low or your valuations are ridiculously high
https://www.reuters.com/markets/deals/c ... 023-02-28/
"a small premium"
Baytex gets a US listing. Rocc executives get their options vested. Us shareholders get crap
Re: Range oil sold
Posted: Tue Feb 28, 2023 11:44 am
by tlengoc
BTE is only receiving 63% of the company. The valuations by Dan was $74.00. That equates to $46.62.
Re: Range oil sold
Posted: Tue Feb 28, 2023 12:39 pm
by dan_s
BTE is acquiring 100% of ROCC. I think the 63% is the percentage of the proforma company that current Baytex shareholders will control of the outstanding shares post closing.
Fraser: This transaction is basically a "stock for stock merger with a cash kicker", therefore my valuation is not comparable to an all-cash deal. Why? because BTE is also undervalued.
Mergers like this should be looked at as 1+1 = 2.2 because size does matter in this business.
A good example is the merger that created Permian Resources (PR).
It will take time to understand the true value of the BTX+ROCC merger. The Wall Street Gang usually needs to see a full quarter of results post-closing. Those of you who own ROCC should be happy with the deal. Baytex is a solid company that now has a lot more running room.
PS: Mergers announced right in the middle of earnings release season, especially Q4 results, will take more time for analysts to update their valuations. All of the energy sector analysts (including me) are up to their eyeballs in new information these days.