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Canadian oil and gas producer Pengrowth (PGH) buys NAL Energy in a stock swap deal valued at...

Canadian oil and gas producer Pengrowth (PGH) buys NAL Energy in a stock swap deal valued at C$1.9B ($1.895B) that it says will give it exposure to light oil plays across Alberta and Saskatchewan. NAL shareholders will own 26% of the combined company after the transaction closes.
Comments (7)
  • gnuman
    , contributor
    Comments (85) | Send Message
     
    This is a travesty that completely undervalues NAL stock. Who in their right mind would agree to a 10% premium in an oil stock when the South Koreans were buying other plays for 30-50% premium?

     

    If there's a vote, I'd veto this takeover. It's pathetic.
    23 Mar 2012, 09:08 AM Reply Like
  • Demonical
    , contributor
    Comments (115) | Send Message
     
    Looks like a 'steal' for PGH. The combined company will have operational synergies, a nice production outlook, improved cash flows.

     

    But NAL shareholders may not be so quick to accept this. I can see more negoiations before this is a done deal.
    23 Mar 2012, 10:25 AM Reply Like
  • gnuman
    , contributor
    Comments (85) | Send Message
     
    I hope you're right because once I get the proxy I'm voting against this. 10% is nothing, this stock is undervalued to begin with. If they offered a 1-to-1 swap I wouldn't complain but this is highway robbery.
    23 Mar 2012, 10:56 AM Reply Like
  • SethOB
    , contributor
    Comments (2) | Send Message
     
    This is a positive case of reaching "CRITICAL MASS" to be a winner. Many small holders of small %'s of Key Oil/Gas potentials have been flat or crumbled because they kept hitting their heads on weak Capital to sit at the table with competitors with lots more "chips". (This has especially been the case if even the smallest mishap comes along (Bad Weather, An Accident, Key Mgt/Skilled-Workers, The combined size and capitalization and industry visibility management (NAL also recovers a key past manager that had moved from then to PGH. This will be a good merger for shareholders of BOTH COS., if they are not too short-sighted to let it go by, greed for immediate payoffs, rather than years and years of more SOLID share value increases & far more Dividend Payouts monthly (to either nicely live-on in retirement...or reinvest to build for future retirement, kids college, etc...
    23 Mar 2012, 02:12 PM Reply Like
  • gnuman
    , contributor
    Comments (85) | Send Message
     
    Their dividend payouts are not really going to help recover the losses for those, like myself, will endure because they thought a 10% premium will be best for everyone.

     

    I was hoping another company would better their offer like ARX.CA would. Pengrowth stock is falling off a cliff and doubt it would go back to it's glorious $13 stock price
    23 Mar 2012, 02:44 PM Reply Like
  • SethOB
    , contributor
    Comments (2) | Send Message
     
    Actually, PGH has traded at $14.60 within the most recent 12months.
    With some good results/news/presentat... for the combined new PGH/NAL combination, even just re-touching that 11-12 month price, it would be a 50% share price, in addition to be collecting very attractive dividends monthly along the way up. If you don't want or need the dividends, reinvest them in the merged stock (or even some other "hot" equities/options/etc of your choice -- to catapult the 50% price increase to a considerably higher "Total Return".
    23 Mar 2012, 03:19 PM Reply Like
  • Demonical
    , contributor
    Comments (115) | Send Message
     
    This deal will be a 'win-win' in the long run. It's beneficial for both companies; PGH gets access to NALs lands and reserves and vice-versa.
    It increases cash flow. An NAL shareholder immediately gets an increase in share valuation and 20% increase in dividends. Also PGH is bringing on the Lindbergh SAGD operation, which NAL unit holders will benefit from too.

     

    I'd say the more I look at it, the better it looks for both parties. It's synergistic.

     

    Disclosure: I do not hold shares of either company.
    23 Mar 2012, 03:46 PM Reply Like
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