Legacy Oil Plus Gas, Inc.OTCPK - Current
Jun. 9, 2015, 6:33 PM
- Activist hedge fund and shareholder FrontFour Capital says it plans to vote against the proposed sale of Legacy Oil + Gas (OTCPK:LEGPF) to Crescent Point Energy (NYSE:CPG), citing the deal’s structure and CPG’s current trading price.
- FrontFour owns 6.8% of outstanding Legacy shares and said in April it planned to nominate three directors to the debt-ridden company's board; late last month, CPG agreed to acquire Legacy for C$1.53B in shares and debt.
- At the time, Legacy had said the deal valued its shares at C$2.85 based on CPG’s $C$30 share price, but Legacy’s shares closed today at C$2.55 in Toronto and CPG closed at C$27.13.
May 27, 2015, 6:57 PM
- Analysts appear to appreciate Crescent Point Energy's (NYSE:CPG) C$1.53B takeover of Legacy Oil + Gas (OTCPK:LEGPF) more than investors; analysts say the deal makes a lot of sense, but investors nevertheless sent CPG shares 5% lower in today's trade.
- Roughly two-thirds of Legacy’s production folding into CPG's core areas, the land being acquired provides an attractive entry into an area of Saskatchewan where Legacy has been posting strong results, and the deal may have a positive impact on the prospects for CPG’s dividend.
- Raymond James analyst Chris Cox thinks the deal provides investors with greater visibility around the sustainability of CPG’s dividend beyond 2015; he believes CPG will be able to fully fund its capital program and current dividend at $70-$75 oil prices in 2016.
- Brian Kristjansen at Dundee Capital upgrades CPG to Buy from Hold, noting that Legacy’s overlevered position and resulting share price weakness allowed it to be bought at an attractive level.
- Analysts say debt-burdened Canadian companies including Lightstream Resources (OTCPK:LSTMF), Penn West Petroleum (NYSE:PWE) and Connacher Oil and Gas (OTCPK:CLLZF) could become targets as larger buyers become active.
May 26, 2015, 5:39 PM
- Crescent Point Energy (NYSE:CPG) agrees to acquire Legacy Oil + Gas (OTCPK:LEGPF) in a stock deal valued at ~C$1.53B, comprised of 18.97M CPG common shares and the assumption of C$967M of net debt.
- CPG says the deal will add 22K bbl/day in high-netback oil production, including more than 15K boe/day is from conventional and unconventional plays in CPG's core regions in western Canada and North Dakota.
- CPG says its 2015 average daily production rate should increase by 6.6% to 162.5Kboe/day, based on average H2 2015 production of 20K boe/day from the Legacy assets; 2015 capex is expected to increase by C$100M to C$1.55B.
- CPG also announces a C$600M bought deal financing for an offering of ~21M common shares at C$28.50/share.