# Lounge > Real Estate / Finance >  Oil and gas consolidation 2021

## ExtraSlow

I think this talk was spread out elsewhere. But 2021 is kicking off with a little combination of whitecap and Torc. 
.https://www.newswire.ca/news-release...866064431.html

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## firebane

> I think this talk was spread out elsewhere. But 2021 is kicking off with a little combination of whitecap and Torc. 
> .https://www.newswire.ca/news-release...866064431.html



Yeah just got an email about that. Not sure what it means but my work is in the Gas side of things sooo.

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## killramos

Wonder who tourmaline is buying next.

Torc deal seems good for shareholders. Predicting future mergers is pretty tough though.

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## ExtraSlow

Torc deal is a good deal for the people I know who've been at Torc for the long haul. There was no other way out.

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## killramos

People I know who were involved sound happy. Not a huge company but solid consolidation. WCP kind of surprised me but not for any reason.

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## gyromonkey

I am under the impression Whitecap has acquired another local O&S shop. I am not sure if its public knowledge yet but it may be. Only reason why in know is because they have requested my wife come in for an interview for her own job in January as she has been off on mat leave when the whole acquisition took place

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## ExtraSlow

I have only gathered one opinion on the deal, and it is positive.

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> I am under the impression Whitecap has acquired another local O&S shop. I am not sure if its public knowledge yet but it may be. Only reason why in know is because they have requested my wife come in for an interview for her own job in January as she has been off on mat leave when the whole acquisition took place



you mean NAL? That's old news.

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## gyromonkey

Yes that's the one. Can't say I am really up to date on O&G as my wife has chosen to stay home with the kiddos. I told her to take the interview just so if they lay her off she might get a package as she was at NAL for 6-7 years

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## ThePenIsMightier

NAL = NewAlta, doesn't it?

Edit - oh fuck. I forgot they got bought a couple years ago. I was horny for them back when they were helping Syncrude centrifuge MFT but I never bought. 
Le chicken.

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## killramos

> NAL = NewAlta, doesn't it?



NAL Is just NAL to my knowledge. Manulife funded oil co

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## riander5

> People I know who were involved sound happy. Not a huge company but solid consolidation. WCP kind of surprised me but not for any reason.



Just wondering if you could elaborate a bit? Are they happy just with better prospects or with the actual transaction?

Looks like they sold for ~5% discount to todays trading. Maybe if they were granted a whack of options at their bottom but.. I don't see how this is that good for anyone except people that wanted out immediately (investors)

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> NAL Is just NAL to my knowledge. Manulife funded oil co



Correct. Just a bunch of random plays all over sask and AB. They went hard before gas went tits up and Manulife hasn't funded them much since (smart move in retrospect)

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## killramos

Mostly from an investors standpoint, it’s all stock and to my knowledge it was just priced on a 10 day weighted average multiple so there isn’t really much “discount” per se in the big picture.

Even for the people who were there it’s nice to get some money “out”.

Is it great for lower level employees? Probably not, I’m sure most of them will be let go. Hopefully some asset teams will move over as the two companies aren’t really all that synergistic.

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## ExtraSlow

Good for the TOG OG's who can finally get thier money out. Will fotnsire mean headcount reductions and that's going to be tough for those who aren't executives with millions of dollars worth of stock.

That seems to be the point of oil companies. Enrich executives.

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## bjstare

> That seems to be the point of oil companies. Enrich executives.



Isn't that the point of like... any business..? Reward the people that are willing to take the (sometimes huge) risk starting it, and make the time/stress commitment to drive success?

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## riander5

> Good for the TOG OG's who can finally get thier money out. Will fotnsire mean headcount reductions and that's going to be tough for those who aren't executives with millions of dollars worth of stock.
> 
> That seems to be the point of oil companies. Enrich executives.



Can confirm - am at private company... lower level employees given options but havent seen a dime. Only executives thus far have been enriched. The company has to buy them out of their cheaper options of course to align them with new prices!

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## Mitsu3000gt

> Isn't that the point of like... any business..? Reward the people that are willing to take the (sometimes huge) risk starting it, and make the time/stress commitment to drive success?



Often times the investors take most or all of the financial risk and the executives have almost zero risk (other than maybe their reputation), but usually that requires them to have a good track record building/selling companies to get the investors on board on the first place.

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## bjstare

> Often times the investors take most or all of the financial risk and the executives have almost zero risk (other than maybe their reputation), but usually that requires them to have a good track record building/selling companies to get the investors on board on the first place.



I can't tell if you're disagreeing with me. For those people, the risk to reputation is equal or > capital risk... and in a sense, because their reputation and track record of proven success is required to get investors (as you said), they are kind of one in the same. Reputation/personal brand risk is significant for someone like that.

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## schurchill39

What is everyone's thought on Obsidian's attempt at a hostile take over of Bonterra?

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## ExtraSlow

> Isn't that the point of like... any business..? Reward the people that are willing to take the (sometimes huge) risk starting it, and make the time/stress commitment to drive success?



DOn't mind me, I'm in a bad mood because of some jerks in texas today. I'll go drink a coffee and relax.

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## killramos

> What is everyone's thought on Obsidian's attempt at a hostile take over of Bonterra?



Bonterra will never go for it so it’s pretty irrelevant.

Obsidian out of touch as per usual

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## ExtraSlow

Obsidian needs to be taken out and that entire managment team shot (then shovel and shut up).

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## Mitsu3000gt

> I can't tell if you're disagreeing with me. For those people, the risk to reputation is equal or > capital risk... and in a sense, because their reputation and track record of proven success is required to get investors (as you said), they are kind of one in the same. Reputation/personal brand risk is significant for someone like that.



Not disagreeing, just making a comment based on what I have seen at some of the places I have worked. Certainly the reputation can be just as valuable as a financial contribution in some instances, but if they're already ~50 years old with more money than they know what to do with from previous ventures (the position most executives seem to be in), and they get investors to give them money, they don't really have any risk. That is the scenario I personally have seen most often, but if it's a new startup or something that someone is personally backing financially, then absolutely they are taking a massive risk.

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## mr2mike

> NAL Is just NAL to my knowledge. Manulife funded oil co



Don't forget they bought all of EOG Canada.

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> Obsidian needs to be taken out and that entire managment team shot (then shovel and shut up).



Looted for the shareholders who lost a shit ton first.

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## killramos

I was just commenting that the name isn’t an acronym

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## msommers

> What is everyone's thought on Obsidian's attempt at a hostile take over of Bonterra?



I'm surprised they have enough money to keep the lights on.

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## The_Rural_Juror

I hear the Osso Bucco at Bonterra amazing but I don't make 89coupe money.

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## bigboom

> Don't forget they bought all of EOG Canada.
> 
> - - - Updated - - -
> 
> 
> Looted for the shareholders who lost a shit ton first.



Actually CNRL bought EOG Canada, Tundra bought the rest.

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## riander5

Tamarack about to be bought or merge I hear....

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## vengie

Heard a rumour CNRL is gearing up for a big acquisition.
Going to be a “major” gas player apparently.

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## riander5

> Tamarack about to be bought or merge I hear....



Damn it i was wrong they just did a bit of M&A

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## nzwasp

> Heard a rumour CNRL is gearing up for a big acquisition.
> Going to be a “major” gas player apparently.



Encana or Tourmaline... I dont know of many major players, but im surprised they haven't done any acquisitions yet.

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## killramos

Fucking Topaz had a chunk of the Tamarack deal too. I wonder how long that whole game will last.

I could never figure out what highwood did (Chinese?), bizarre little company but it seems they are basically gone now.

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## riander5

> Fucking Topaz had a chunk of the Tamarack deal too. I wonder how long that whole game will last.
> 
> I could never figure out what highwood did (Chinese?), bizarre little company but it seems they are basically gone now.



No one I knew who knew about this deal had any idea what highwood was all about. I heard the assets they gave up were pretty unreal for the price so they just must have wanted out

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## killramos

They tried to buy the peace river oil sands Chinese JV stuff from pennsidian and backed out of the transaction. That’s all I ever knew about them.

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## msommers

> Heard a rumour CNRL is gearing up for a big acquisition.
> Going to be a “major” gas player apparently.



Ovintiv, Tourmaline, ARC, Peyto, Seven Gen, BirchCliff...

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## dirtsniffer

Peyto was my first thought.

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## ThePenIsMightier

> Heard a rumour CNRL is gearing up for a big acquisition.
> Going to be a major gas player apparently.



This sounds inconsistent with their primary business model, non?
Canadian gas will be $2/GJ for decades to come, won't it?

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## dirtsniffer

Figured it would be to shore up diluent.

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## killramos

Peyto or Ovintiv (Canadian assets) would make the most sense to me.

I can’t see CNQ getting any of the others for a price that would be accretive and or even wanting them at all.

That and I think you could get them for relatively low dollars, frankly CNQ isn’t as flush as they once were.

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## ExtraSlow

CNQ can make as much gas as it wants from existing lands. Probably cheaper than buying Peyto too. OVV only makes sense if they are doing it as asset sales, not a corporate transaction.

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## killramos

> CNQ can make as much gas as it wants from existing lands. Probably cheaper than buying Peyto too. OVV only makes sense if they are doing it as asset sales, not a corporate transaction.



That’s actually the point, production is currently valued at such low metrics it’s actually cheaper to buy it than drill for it. In some cases.

That and by buying production you currently get a free option on upside since no one is paying for undeveloped locations anymore no matter how prospective. Murray loves him some free options, that how you make real money. 

Never been a greater time to have cash lying around.

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## ExtraSlow

> Tamarack about to be bought or merge I hear....



Tamarack buying assets. 

https://www.newswire.ca/news-release...876000898.html

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## riander5

> Tamarack buying assets. 
> 
> https://www.newswire.ca/news-release...876000898.html



I know, already said it.

On another note, has anyone ever looked at TVE on the NYSE by accident when typing TVE into their trading platform?

That baby just keeps going!

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## sabad66

Shell just sold Duvernay stuff including Fox Creek to Crescent Point for 700M USD. Seems they continue to slowly pull out of upstream in Canada  :Frown:

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## ExtraSlow

Spartan Delta has been buying too v

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## mr2mike

> Shell just sold Duvernay stuff including Fox Creek to Crescent Point for 700M USD. Seems they continue to slowly pull out of upstream in Canada



Shell gone by year end. (in Canada)

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## lasimmon

> Shell gone by year end. (in Canada)



They still have the Pieridae issues to deal with. Not going to be that easy I don't think.

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## ExtraSlow

That shell duvernay stuff is pretty juicy. Nice wells.

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## SJW

> That shell duvernay stuff is pretty juicy. Nice wells.



Group buy?

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## riander5

Lfg cpg!!!!!

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## killramos

Looks like Ovintiv turfed a big chunk of duvernay as well

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## ExtraSlow

Who bought from ovv? Didn't see the buyers name in the release.

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## sabad66

> Shell gone by year end. (in Canada)



Downstream and LNG Canada are pretty solid still so don’t think a complete exit out of Canada will happen. They also need groundbirch to supply LnG Canada so that will still be around. Any new upstream exploration tho, not very likely.

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## killramos

> Who bought from ovv? Didn't see the buyers name in the release.



It appears that was intentional

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## ExtraSlow

Sounds like CNQ's system, although hard to imagine them winning a bidding war, and those should have been attractive assets, I think.

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## SKR

> Shell just sold Duvernay stuff including Fox Creek to Crescent Point for 700M USD. Seems they continue to slowly pull out of upstream in Canada



Why is Crescent Point acting like they have money again? I thought they were flat ass broke.

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## killramos

Pretty standard CPG playbook. Keep buying things to obfuscate to your shareholders how shitty your track record and financials are.

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## SKR

Yeah I thought they were big time fucked though when they stopped buying and started selling all (edit: not literally "all") their SE SK stuff.

Whatever, I'm out of the oilfield, hopefully permanently, and I'll never have to bother with Crescent Point ever again.

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## davidI

> Yeah I thought they were big time fucked though when they stopped buying and started selling all (edit: not literally "all") their SE SK stuff.
> 
> Whatever, I'm out of the oilfield, hopefully permanently, and I'll never have to bother with Crescent Point ever again.



I haven't been following Canadian industry much but with all the global stimulus and potential for governments trying to squirm away from the debts/deficits through inflation, a commodity supercycle may well already be underway.

CPG may just be choosing the coinflip - heads we're still fucked, tails we time some stellar cash flows and fix our balance sheet.

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## mr2mike

> They still have the Pieridae issues to deal with. Not going to be that easy I don't think.



Forgot about that. I'd say that really is the only issue. 

Duvernay stuff is too expensive to D&C. 
ExtraSlow is frothing at the mouth because he loves a good expensive completion  :thumbs up:

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## ExtraSlow

> Duvernay stuff is too expensive to D&C. 
> ExtraSlow is frothing at the mouth because he loves a good expensive completion



I love expensive EVERYTHING. Man do you remember when I was drilling wells in horn river with offshore style RSS tools? Fuck that was a fun project. Spending money is fun. Although these days I do focus more on the "value" side of things, and most popular tool is actually really cheap, but, I have expensive stuff too if someone wants . . .

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## mr2mike

This guy doesn't just sell key chains and life advice...

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## ExtraSlow

Tervita and Secure merging. 
https://www.newswire.ca/news-release...845918311.html



> *SECURE Energy Services Inc. and Tervita Corporation Merge to Create a Stronger Midstream Infrastructure and Environmental Solutions Business*

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## mr2mike

Not to be out done by ExtraSlow...

geoLOGIC and JWN Energy merging.


Also why was this not a MEGA THREAD??

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## ExtraSlow

I had a really great conversation with Bill Whitelaw of JWN back when I ran my training company, and he was really helpful. Nice guy. Did JWN spin off the Glacier Media group as well? they do most agriculture stuff, I think.

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## BerserkerCatSplat

Doesn't seem like there's a lot of overlap between the two outfits, more of a complimentary merger. geoLOGIC has been doing some acquisition work since they were bought by a VC firm a few years back.

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## killramos

Geologic and JWN does seem like an odd fit to me as well. Maybe JWN trying to bump up its in house Canadian Data analytics?

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## BerserkerCatSplat

> Geologic and JWN does seem like an odd fit to me as well. Maybe JWN trying to bump up its in house Canadian Data analytics?



"Merger" seems to be an odd way of describing it as geoLOGIC is buying JWN and JWN's staff is being moved over to the geoLOGOC offices. I think geoLOGIC mainly wanted access to JWN's advertising/media and international ops.

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## mr2mike

Agreed anything I know. When GEOLOGIC buys something they pretend to merge for a year, then eventually completely overrun the old company.
Take Cdn discovery's frac database for example.

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## ExtraSlow

Only the strong survive. You'd hope that whichever company is better run would take over and "overrun". I seem to recall a plucky but hapless Canadian gas producer getting overrun by your current company . . . . Actually, you guys have done it a few times.

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## killramos

> Agreed anything I know. When GEOLOGIC buys something they pretend to merge for a year, then eventually completely overrun the old company.
> Take Cdn discovery's frac database for example.



And it’s about a million times better for it

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> Only the strong survive. You'd hope that whichever company is better run would take over and "overrun". I seem to recall a plucky but hapless Canadian gas producer getting overrun by your current company . . . . Actually, you guys have done it a few times.



Did they pretend that was a Merger? Or was it an acquisition?

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## mr2mike

> And it’s about a million times better for it
> 
> - - - Updated - - -
> 
> 
> 
> Did they pretend that was a Merger? Or was it an acquisition?



Acquisition. 
It's only good if your company also has geoscout. 
Otherwise, it's a POS to use. 
Made workarounds to actually pull the appropriate data.

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## ExtraSlow

> Did they pretend that was a Merger? Or was it an acquisition?



 Fair enough, that was a straight purchase. A different time, I was part of a gong-show where a foreign company with a horse-head logo bought 4 Canadian companies, and tried to make one big happy family out of them. It was quite a mess for the 12 months I stuck around. Although, I understand they have a functional organization now. The timing of all that was pretty interruptive of my career progression, so I've always held a grudge. Buncha my coworkers got rich off stock options too, but I didn't, so again, held a grudge. 

So grumpy.

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## bigboom

Lots of interesting things happening in this space. Can't help but think that companies are seeing an opportunity to step into the space the RSEG used to be in before the Enverus acquisition.

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## BerserkerCatSplat

> Acquisition. 
> It's only good if your company also has geoscout. 
> Otherwise, it's a POS to use. 
> Made workarounds to actually pull the appropriate data.



I've head through the grapevine that they're working on a new frac database interface for the non-geoSCOUT users.

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## schurchill39

> ExtraSlow is frothing at the mouth because he loves a good expensive completion



I missed this when I first read your comment.  :ROFL!: 




> I've head through the grapevine that they're working on a new frac database interface for the non-geoSCOUT users.



Hopefully, because I agree with 
@mr2mike
 - they completely fucked the frac database. The current frac module is hot garbage, I've only found it useful for being able to export all the data like everyone wanted to do in the first place. Any of the extra's suck unless you want a fun little visualization of frac stages for a presentation. qFind is no good too, why on earth can't you just give me the documents for my selected wells instead of every single well on the screen? At least the production module is okay.

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## ExtraSlow

I do like an expensive completion, but truly, I'm a simple minded guy. Get the best thing for the well, and you'll get the best and most economic wells. That's not always my gear, and I'm pretty open about that with customers.

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## riander5

> I do like an expensive completion, but truly, I'm a simple minded guy. Get the best thing for the well, and you'll get the best and most economic wells. That's not always my gear, and I'm pretty open about that with customers.



You must hate the clearwater!

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## killramos

> I missed this when I first read your comment. 
> 
> 
> 
> Hopefully, because I agree with 
> @mr2mike
>  - they completely fucked the frac database. The current frac module is hot garbage, I've only found it useful for being able to export all the data like everyone wanted to do in the first place. Any of the extra's suck unless you want a fun little visualization of frac stages for a presentation. qFind is no good too, why on earth can't you just give me the documents for my selected wells instead of every single well on the screen? At least the production module is okay.



Use qfind on the ticket. Not perfect but better in every way than the module.

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## mr2mike

We now use Accumap's frac module. Integration is not bad and connecting directly to the data to build tables works.
If you can export prod data from accumap, you can export frac data. Easy.

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## schurchill39

> Use qfind on the ticket. Not perfect but better in every way than the module.



Thats what I end up doing. When you have a bunch of wells selected it gets a bit tedious but better than that qfind trash. 

What's going on with Spartan Delta? Are they already in the sell phase? I can never get a good handle on those guys.

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## killramos

I don’t pretend to understand that company

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## ExtraSlow

I'm supposed to have coffee with a spartan delta person next week. Will see if I get smarter.

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## ThePenIsMightier

> I'm supposed to have coffee with a spartan delta person next week. Will see if I get smarter.



Read too quickly and thought that referred to the Spartan DeltaV DCS.
In which case your lunch will be free in hopes that you drop a quick $1.5MM on a controls system.
Not the same.

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## davidI

Ouch. Another 800-1000 layoffs due to the Cenovus acquisition of Husky coming this week.

https://calgary.ctvnews.ca/latest-ro...5maXLVgm0dxHcg

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## schurchill39

Whitecap just bought up another company, Kicking Horse Oil & Gas

https://www.wcap.ca/investors/news-r...funds-flow/239

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## troyl

TVE snapping up Anegada

http://www.tamarackvalley.ca/wp-cont...ease-FINAL.pdf

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## riander5

Whitecap snapping up companies and infecting em with Covid

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## killramos

> TVE snapping up Anegada
> 
> http://www.tamarackvalley.ca/wp-cont...ease-FINAL.pdf



What a bizarre acquisition...

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## riander5

> What a bizarre acquisition...



Quick payout wells just like their clearwater assets. They are trying to be an oil juggernaut!

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## killramos

> Quick payout wells just like their clearwater assets. They are trying to be an oil juggernaut!



Hopefully they bring most of the technical team along because those two plays couldn’t be more different.

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## INITIALD

> Whitecap snapping up companies and infecting em with Covid



 :ROFL!:

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## schurchill39

> Whitecap snapping up companies and infecting em with Covid



Hearing stories come out of there about this outbreak is just wild. Management does not give a fuck about infections it seems.

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## lasimmon

> Hearing stories come out of there about this outbreak is just wild. Management does not give a fuck about infections it seems.



25 cases on one floor and only expected to work from home for like 4 days for that floor haha.

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## ExtraSlow

I blame TORC.

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## ThePenIsMightier

Inter Pipeline bought by Pembina.
$8.3 billion, all stock.

https://www.bnnbloomberg.ca/pembina-...line-1.1611131

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## killramos

Wonder if that one passes competition act

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## ThePenIsMightier

> Wonder if that one passes competition act



It's hard to legislate competition in a field that doesn't add value.

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## killramos

> It's hard to legislate competition in a field that doesn't add value.



I don't disagree, I just always find the song and dance around government M&A approvals funny. Have they ever said no? Where is the line?

I assume its just alot of paperwork to pad the bureaucracy.

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## dirtsniffer

glad carney and brookfield aren't getting it.

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## tirebob

Oh snap! The CEO of Inter Pipeline is a long time client of mine and was booked in today for one of his cars but had to reschedule last night... I guess I can see why! lol

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## killramos

> Oh snap! The CEO of Inter Pipeline is a long time client of mine and was booked in today for one of his cars but had to reschedule last night... I guess I can see why! lol



Probably unrelated. By the time these things get press released they have been locked up for weeks.

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## tirebob

> Probably unrelated. By the time these things get press released they have been locked up for weeks.



Yeah probably true...

In other news... IPL stock is up almost 9% today so far!

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## ThePenIsMightier

Just ordered new Wraith and will need to change work order to get some 24's put on when it arrives.
LoL!

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## riander5

> Hopefully they bring most of the technical team along because those two plays couldnt be more different.



From what I hear, you just drill a hole in the clearwater and the oil flows. Technical team not needed  :rocket:

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## msommers

> From what I hear, you just drill a hole in the clearwater and the oil flows. Technical team not needed



Hahaha fuck seriously

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## Euro_Trash

> From what I hear, you just drill a hole in the clearwater and the oil flows. Technical team not needed



I would have been highly surprised if their technical team had gone over (ie. would have required a serious retention bonus structure)

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## ExtraSlow

retention can't be a thing for technical teams anymore can it? I was part of a rention structure back in the goold old days, but that world has ended and it's not coming back. If people don't want a job, fuck em.

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## Euro_Trash

I mean it more as that was never their MO - they followed their business plan: build, sell, build again

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## ExtraSlow

gotcha, and agree. It's getting harder to do the build-sell cycle, but for a ot of the best technical and management teams, ending up at the acquiring company is an undesirable scenario.

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## riander5

> Hahaha fuck seriously



https://www.gljpc.com/blog/creativity-clearwater

Openhole multilateral, no fracs, wells typically payout at $50 WTI in under a year I'm told

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## ExtraSlow

payouts are for chumps . . . . wait that's for a different play . . . .

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## killramos

What doesn’t payout in a year* these days

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## ExtraSlow

Where's that slide deck about EOG switching to a "Double Premium" strategy? Fuck that one was the best. The implication being that prior to 2021 they were not focusing on drilling the most profitable rock.

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## riander5

> What doesn’t payout in a year* these days



I mean I was told in under 3 months, but i obviously can't verify. The wells are stupid simple and payout. It's like what the viking wishes it was

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## flipstah

> glad carney and brookefield aren't getting it.



Hmmm https://www.cbc.ca/news/business/int...ield-1.6049848

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## dirtsniffer

fucking dickheads

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## ExtraSlow

Brookfield, excellent chicken-hawking.

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## killramos

Meanwhile at IPL…

Nothing like a good old fashioned bidding war to generate goodwill

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## suntan

Repeat of Shaw employees:

1) "My stock is a worth more!"

2) "Oh fuck, I lost my job"

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## ExtraSlow

Jobs are for chumps. Trust me, I is one.

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## mr2mike

Spartan Delta picked up Velvet Energy

So I guess you could say the Delta is gaining.

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## ExtraSlow

Oh That's interesting. I know people at velvet. I know. One dude at spartan, but not well.

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## schurchill39

> Spartan Delta picked up Velvet Energy
> 
> So I guess you could say the Delta is gaining.



Isn't Spartan buying other companies the opposite of what that group of people usually do?

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## flipstah

> Isn't Spartan buying other companies the opposite of what that group of people usually do?



Spartan acquires Tokyo Smoke

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## ExtraSlow

Vermillion buy Leucrotta: 
https://energynow.ca/2022/03/vermili...r-477-million/

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## suntan

That's good for the 101 Dalmations.

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## schurchill39

> Vermillion buy Leucrotta: 
> https://energynow.ca/2022/03/vermili...r-477-million/



I had heard grumblings they were looking at acquisitions in a _new_ play but for some reason I was thinking it was maybe Repsol's Duvernay assets. Leucrotta makes a lot of sense though.

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## ExtraSlow

Who's buying cnooc baby? Who even could buy the nexen oilsands stuff? Has to be a Canadian company. CNRL obvs has the ability.

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## Darkane

Cnrl, distant second third - Suncor, cenovous

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## Xtrema

> Who's buying cnooc baby? Who even could buy the nexen oilsands stuff? Has to be a Canadian company. CNRL obvs has the ability.



Is it a fire sale? If so, that's down CNRL's alley.

CNOOC is keeping their Russian plays and sounds like secondary sanction is imminent.

----------


## ExtraSlow

> Cnrl, distant second third - Suncor, cenovous



Probably correct, you just know how the rumors work.

----------


## suntan

Well that sorta sucks, but I'm not sure how many people were working there anyhow.

Had an employee's friend work there, she had some crazy stories about the Chinese.

----------


## ExtraSlow

I certainly have no stores I am able to put in writing about the chinese business practices of anywhere I have worked or done business.

----------


## killramos

Depending on how a couple other processes go I wonder if Strathcona might be able to take a run at CNOOC oil sands assets.

They would have retained some thermal expertise from PGF such that they might be a black sheep in the process.

----------


## Darkane

I’ll throw a curveball here 

GROC.

----------


## schurchill39

> Who's buying cnooc baby? Who even could buy the nexen oilsands stuff? Has to be a Canadian company. CNRL obvs has the ability.






> Cnrl, distant second third - Suncor, cenovous






> Is it a fire sale? If so, that's down CNRL's alley.
> 
> CNOOC is keeping their Russian plays and sounds like secondary sanction is imminent.



I can't see how it could be anyone but CNRL

----------


## killramos

Tier 2 assets…

Sounds right up CNRL’s alley

----------


## riander5

This is how I imagine CNRL sees an acquisition - 

Step #1 - Looks at lifting cost

Step #2 - Oh yeah we can get that down via vendor pay cuts

----------


## mr2mike

> Tier 2 assets…
> 
> Sounds right up CNRL’s alley



Only if CNOOC sells for a substantial loss.

----------


## msommers

> I can't see how it could be anyone but CNRL



With the 30-40% bonuses I heard they were handing out at Cenovus, they are feeling rich lately.

----------


## killramos

30%?

What are they summer students or something?

----------


## riander5

Pretty sure low level managers at CNRL were making 200-400k in pre tax bonuses after the bounce from covid lows - they are definitely feeling rich there!

----------


## vengie



----------


## ExtraSlow

> 



This.

----------


## suntan

> Pretty sure low level managers at CNRL were making 200-400k in pre tax bonuses after the bounce from covid lows - they are definitely feeling rich there!



They took pay cuts, so good on them.

CNRL is a hard place to work for a lot of people, but they really, really, really try to not lay people off.

----------


## riander5

> They took pay cuts, so good on them.
> 
> CNRL is a hard place to work for a lot of people, but they really, really, really try to not lay people off.



That seems to be the word on the street, but sometimes I talk to people that work there and they really seem to like it. Definitely hear more negative than positive overall though.

The options they continue to give is what juiced peoples bonuses. 

From people I have talked to that work there, they basically tell everyone they are top performers, so no one sees layoffs coming. I interviewed a guy from there for my company and he basically said he was the greatest employee of all time, due to manager feedback. He didn't get the job and he's probably pretty happy about that right now  :ROFL!:

----------


## killramos

I know a lot more people who used to work for CNRL than I know who still do.

----------


## suntan

They have a lot of turnover, but then again that's the oil biz.

----------


## ExtraSlow

CNRL knows what it's doing. There are a few beyonders there, and a few beyonders who used to work there. Anyone who thinks CNRL is doing things wrong isn't understanding the situation.

----------


## vengie

> CNRL knows what it's doing. There are a few beyonders there, and a few beyonders who used to work there. Anyone who thinks CNRL is doing things wrong isn't understanding the situation.



This.

That said I'd never want to work there.

----------


## ExtraSlow

> This. That said I'd never want to work there.



 Considering I'm looking for work right now, I don't think I'll make any statements about places I don't want to work. On a related note, anyone know if CNRL really has a blacklist for employees who quit previously? Asking for a friend's dad.

----------


## msommers

My experience at CNRL was really good albeit short despite the Chief Geo trying his hardest to get me on.

Others either hate their life there or have moved on. Heard that some teams are being generously called a skeleton crew, but more like the walking dead.

----------


## Xtrema

> CNRL is a hard place to work for a lot of people, but they really, really, really try to not lay people off.



Wait, I thought nobody ever get laid off from CRNL, they just quit.  :Big Grin: 

or did I just whoosh?

----------


## suntan

> Wait, I thought nobody ever get laid off from CRNL, they just quit. 
> 
> or did I just whoosh?



No that's pretty well what happens.

But they did let go a lot of the Shell hires since they sucked.

----------


## DonJuan

No comment on any CNRL  :Angel:

----------


## Xtrema

> But they did let go a lot of the Shell hires since they sucked.



Yeah, I had a feeling that won't last long.

----------


## lasimmon

- - - Updated - - -




> Considering I'm looking for work right now, I don't think I'll make any statements about places I don't want to work. On a related note, anyone know if CNRL really has a blacklist for employees who quit previously? Asking for a friend's dad.



No blacklist unless you were awful..

They are hiring a completions engineer right now..

----------


## ExtraSlow

> - - - Updated - - -
> 
> 
> 
> No blacklist unless you were awful..
> 
> They are hiring a completions engineer right now..



I am awfully handsome

----------


## engibeer

CNRL hits $100B market valuation  :rocket:

----------


## sabad66

Did they actually fire Shell people? The ones I know of who are no longer there quit on their own after the 2 year salary freeze period expired and had their pay adjusted down to align with CNRL. Much better for them that way since they don’t have to pay out huge severance packages

----------


## killramos

I job shopped a bit in the fall and personally found that their comp was very out of touch.

It didn’t seem to me like they wanted good people, just bodies to do what they are told and stay in their lane.

Was very interesting. Hiring manager was cute though.

----------


## ExtraSlow

They have a totally different view of the labor market for technical staff compared to your most recent few employers.

----------


## vengie

> I job shopped a bit in the fall and personally found that their comp was very out of touch.
> 
> It didn’t seem to me like they wanted good people, just bodies to do what they are told and stay in their lane.
> 
> Was very interesting. Hiring manager was cute though.



Sir this isn't the humble brag thread.

----------


## SKR

> Hiring manager was cute though.



What was his name? (Classic gag.)

----------


## schurchill39

> They have a totally different view of the labor market for technical staff compared to your most recent few employers.



Probably has something to do with the hundreds upon hundreds of applications they get for every position they post. I know three people still over there (one went over with Devon) and they are all team leads or higher and they are compensated pretty fairly. But I can definitely see us peons getting the short end of the stick there.

----------


## Mogg

Is there any tools out there to legitimately compare compensation at the producers or is this all just hear say?

----------


## ExtraSlow

> Is there any tools out there to legitimately compare compensation at the producers or is this all just hear say?



Hearsay is the way. Glass door is not helpful.

----------


## gpomp

We are hiring a Junior Technologist / Engineer. Prefer someone who is a new grad, so sorry ES.

----------


## mr2mike

> We are hiring a Junior Technologist / Engineer. Prefer someone who is a new grad, so sorry ES.



But he knows his way around a coffee machine, so what's the issue?

----------


## schurchill39

> We are hiring a Junior Technologist / Engineer. Prefer someone who is a new grad, so sorry ES.



Extraslow can make spread sheets and go early to hold seats at your favorite restaurants with the best of them!

----------


## ExtraSlow

I'm young for my age. My other qualifications are above.

----------


## sabad66

Not really a consolidation but didn’t want to start another thread. 

Activist investor Elliott wanting to shake things up at Suncor including selling off the sales & marketing (petro-Canada) business:
Www.restoresuncor.com

Stock price up cuz of this

----------


## ExtraSlow

https://boereport.com/2022/06/28/whi...ZKcGw0X2NhMw..

----------


## killramos

They got some balls that’s for sure.

----------


## ExtraSlow

Wcp not fucking fooling around.

----------


## killramos

All debt. What year is this?

----------


## schurchill39

Jeeze, thats going to be the biggest culture clash since 7G and ARC.

----------


## killramos

> Jeeze, thats going to be the biggest culture clash since 7G and ARC.



XTO doesn’t really have any employees.

They are all seconded from Imperial and Exxon.

Maybe you see a few people move over, but no “culture” per se.

----------


## schurchill39

> XTO doesn’t really have any employees.
> 
> They are all seconded from Imperial and Exxon.
> 
> Maybe you see a few people move over, but no “culture” per se.



I'm aware, I've done lots of work for XTO back in the day and did a stint at Imperial. Any one of their subsidiary companies are just Exxon employees or contractors working in that "division" (Kearl is technically a separate company so same thing) and they all operate out of the Quarry Park campus so its hard to separate yourself there. To run the assets though there will be people going over, maybe not a whole "company" worth of people but there will still be people at least in the short term and those people, having been under the Imperial/Exxon umbrella, definitely have an engrained culture and do things much much differently. Even if it wasn't any people the well files and any documentation for their development is on a whole other level from what any of us are used to. Of course at the end of the day everything will work out, but to say there isn't completely different cultures is crazy.

Either way, its a big move and one I did not see coming.

----------


## ExtraSlow

I've been part of two large acquisitions with major culture changes. In the end, as long as the acquirer has a strong culture, and the management sets clear expectations, it will be just fine. I find field staff figure it out faster than those soft people in the office, but a certain amount of attrition is a natural part of the process, and honestly not a problem. That's the best way of gaining "efficiencies", through headcount reductions. 

When TAQA bought Northrock, Primewest, Pioneer Canada and Shiningbank all within "effectively one year" it was a total disaster, but then again, TAQA had zero local employees before that. A case study that should be taught in MBA school.

----------


## killramos

I know I don’t know what I am talking about.

But confirmed this aft that WCP is taking 0 technical staff, they are all going back to the motherships.

Field staff yes, office staff no.

----------


## ExtraSlow

Sounds like a win-win-win.

----------


## ThePenIsMightier

> ... A case study that should be taught in MBA school.



LoL at "teaching MBA's..."

----------


## ExtraSlow

Tamarack Valley buys Deltastream. 
https://energynow.ca/2022/09/tamarac...n-1-1-bln-deal

----------


## killramos

I can never remember where this thread is when I try to update it.

Real estate / finance? Interesting.

----------


## ExtraSlow

I just search keywords in the thread title. I can never find what I want any other way. I blame coronavirus.

----------


## riander5

Word on the street is some of the VP's basically 100x'd their initial investment into the company... in 3-4 years??

good on them!

They are gonna be rolling with bavarianbeast and shak now

----------


## killramos

Working for a living is massively overrated. Owning something with a liquidity discount and value multipliers on the other hand is the tits.

----------


## riander5

> Working for a living is massively overrated. Owning something with a liquidity discount and value multipliers on the other hand is the tits.



At the very least max out you and your families CCPC tax exemptions amirite

----------


## suntan

Maybe a few more weeks for me? Let's see what happens.

----------


## mr2mike

> Tamarack Valley buys Deltastream. 
> https://energynow.ca/2022/09/tamarac...n-1-1-bln-deal



Big deal. TVE all in on Clearwater.
Under 1yr payouts at $40 WTI. Pretty damn good.

----------


## ExtraSlow

Anyone have thoughts on why OVV is bothering with a Montney showcase next Monday? Seems unnecessary unless they are about to sell the asset. 
https://investor.ovintiv.com/2022-09...onference-Call

----------


## riander5

> Maybe a few more weeks for me? Let's see what happens.



Which clearwater company are you at  :Pimpin':

----------


## SKR

> Tamarack Valley buys Deltastream. 
> https://energynow.ca/2022/09/tamarac...n-1-1-bln-deal



I had Deltastream for a customer once. They followed none of our recommendations, did whatever they wanted without telling us, then bitched because the price was higher than what we quoted. Even though none of what we quoted happened. Also the consultant wore jeans every day that were so bedazzled I thought they had to be girls jeans, and refused to answer texts or phone calls. Fuck Deltastream.

----------


## ExtraSlow

I had a wellsite supervisor who wore nothing but Ed hardy shirts and bedazzeld jeans. Dislike.

----------


## vengie

Did he have a "Dirty hands, clean money" sticker?

----------


## ExtraSlow

They hadn't invented stickers back then.

----------


## vengie

Dad? Is that you?

----------


## killramos

Not really consolidation but hammerhead is going public with a spac. Valuing co at $1.4B.

Super weird deal.

----------


## vengie

Hah.
I knew something weird was going on with them based on the actions of many I deal with there...
My hunch was a sale.
But in a roundabout way I guess they kind of are.

----------


## killramos

I mean any company that hockey stick graphs their production for the year to exit 25% higher is up to something.

I’m guessing this particular transaction was not their first choice of outcome.

----------


## ExtraSlow

I thought I understood the concept of SPAC in the tech space, and I thought I understood Oil and Gas transactions, but I can't really wrap my head around this combination of the two. Probably a "me" problem.

----------


## ExtraSlow

Hey, this is the opposite of consolidation.





> Pouyanne noted that the oil sands assets the company operates in Canada are expected to generate some $1.5 billion in cash flow this year.
> 
> The French supermajor recently issued an update on its strategy for the future, noting how its focus on low-cost oil and gas projects and a strong expansion of its LNG operations have put the company in a favorable position in the current energy market context.
> 
> TotalEnergies also boasted that its low breakeven cost per barrel of oil, at $25, has enabled it to generate additional cash flow from every barrel it produces, to the tune of $15 billion as of this year.
> 
> Yet a lot of TotalEnergies’ plans for the future have to do with electricity and more specifically renewable electricity, in a marked departure from what has been its core business for decades. The French supermajor is among the most active “transformers” in the energy industry, eyeing to become one of the five biggest renewable energy providers in the world.
> 
> In line with its transformational plans, TotalEnergies has been in the process of pulling out of Canada. In 2020, the company took an impairment of $7 billion based on its estimates of oil prices in the period 2020-2023. The company also said that year it expected oil demand to peak by 2030.



https://oilprice.com/Latest-Energy-N...ategy.amp.html

----------


## ThePenIsMightier

Holy fuck!
Don't they still own about 20% of Fort Hills?! This should radically complicate that partnership (even though - dealing with French Refiners as partners in an oilsands mine hasn't been easy).

----------


## ExtraSlow

Dealing with a smaller public company won't be worse than the French.

I do think it's fascinating business strategy to spin off assets that generate 1.5b profit per year.

----------


## mr2mike

French refiners. I'm imagining how to adapt a Citroën to a Fort Mac Lifestyle.

----------


## ExtraSlow

The 2cv is good on rough roads. Something about a basket of ouefffs and plowing a farmer.

----------


## killramos

> Dealing with a smaller public company won't be worse than the French.
> 
> I do think it's fascinating business strategy to spin off assets that generate 1.5b profit per year.



But think of the carbons they are no longer responsible for.

Total can release an ESG report showing they have lowered their emissions by 40%* YOY! Great success!

*whatever the made up number of carbons is

Becoming a smaller public will just make it easier for Suncor to go hostile and absorb.

----------


## suntan

This is a good thing for Alberta.

----------


## ThePenIsMightier

Also, it sounds like FH is _not_ performing as anticipated. Ore grades might be way lower than predicted and somehow releasing H2S during primary crushing! That's unheard-of!

----------


## ExtraSlow

> This is a good thing for Alberta.



Accurate. Fuck off euros.

----------


## killramos

> Also, it sounds like FH is _not_ performing as anticipated. Ore grades might be way lower than predicted and somehow releasing H2S during primary crushing! That's unheard-of!



While this may or may not be true. I don’t think this announcement is based in any rational business thinking.

----------


## zechs

> and somehow releasing H2S during primary crushing! That's unheard-of!



Oh god, please no. I'm not going back there ever again because of idiots in management. You can't make me (flashbacks to literally every single oilsands site).

----------


## troyl

Calgary, Alberta (October 26, 2022) – Suncor Energy (TSX: SU) (NYSE: SU) today announced that it
has agreed to purchase an additional 21.3% working interest in the Fort Hills Project and associated
sales and logistics agreements from Teck Resources Limited, for consideration of $1 billion. Upon
closing, Suncor’s aggregate share in the project will increase to 75.4%. The acquisition will be funded
by cash from asset sale processes currently underway and the company remains on track with its
previously articulated capital allocation framework.


https://sustainability-prd-cdn.sunco...256.1666831160

----------


## ExtraSlow

Makes good sense. Basically as good as a share buyback. Zero risk.

----------


## ThePenIsMightier

$1 billion for a 21% stake in a project that cost over $17 billion to build?!?
Fuck me. Is Teck going to take _all this cash_ and quickly bang off their own Frontier mine, finally?
LoL! It's a good thing _actual_ mining is making Teck money.

----------


## ExtraSlow

Spartan Delta is doing so good they might stop doing it? 

https://boereport.com/2022/11/30/spa...-for-2023/amp/
Need a power point engineer to explain this to me.

----------


## ThePenIsMightier

That article makes me want to set new paradigms in delivering synergy, but moreso...
*SHORT!!*

----------


## mr2mike

They're predicting not $110 oil but hoping to sell with the prospect of $120 oil.

----------


## ExtraSlow

Well, I liked the press release so much I have already put in my buy order for the morning. I'll take one Spartan please.

----------


## schurchill39

> spartan delta is doing so good they might stop doing it? 
> Attachment 110244
> https://boereport.com/2022/11/30/spa...-for-2023/amp/
> need a power point engineer to explain this to me.



eli5???

----------


## ExtraSlow

Some companies are worth a certain $ in share price vs $ in production.
SDE is lower than some peers. So maybe the parts of SDE would be worth more than the whole? Suspect the market is not giving "full value" for the acquisitions, or has some reason to dislike them vs other Canadian "non-oilsands" names. I personally like the assets, mostly, but that's only because they are in areas I've worked. Assigning a value to a basket of assets is outside my scope.

I do feel like the market would figure it out over time. But boards have a duty to shareholders to maximize, so they are looking at options.

----------


## suntan

Purchasing companies almost always results in a short to med term price valuation drop since you're taking over assets that haven't been performing well.

----------


## mr2mike

SDE is a great buy. Keep buying. 

*I also own shares since $7.28

----------


## ExtraSlow

Heard a rumor people were looking at Obsidian. Don't think that makes sense, but I'm not in the a&d space. Mike you guys wanna buy that?

----------

