Athabasca Oil Corporation (TSX: ATH) recently announced its disposition of non-core light oil assets in the Montney and Duvernay shale plays to a private equity backed buyer. The total net production sold was 2,925 boe/d, for a total consideration of $CAD 160MM (subject to some closing adjustments).
The importance of the "narrative inversion" cannot be overstated. Reading the news about the implosion of negative cash-flowing PE holdings, it seems like ultra-cheap energy could become an attempt to reactivate the original business model of PE. Where the exits will be may be less relevant to these buyers than the simple fact that they do not need a constant stream of new cash funding. Wonderful article as always.
Will PE never learn...Energy is not in their wheelhouse.
The importance of the "narrative inversion" cannot be overstated. Reading the news about the implosion of negative cash-flowing PE holdings, it seems like ultra-cheap energy could become an attempt to reactivate the original business model of PE. Where the exits will be may be less relevant to these buyers than the simple fact that they do not need a constant stream of new cash funding. Wonderful article as always.
PIPE-Strathcona is an opportunity for the retail to see what a well-managed private company looks like and what results can provide.