Pacific Rubiales Beaten Down And Oversold Offering Long-Term Value With Significant Positive Catalysts
Caiman Valores • 33 Comments
Caiman Valores • 33 Comments
Pacific Rubiales: A Deeply Under-Valued Colombian Diamond In The Rough
Caiman Valores • 13 Comments
Caiman Valores • 13 Comments
Pacific Rubiales: A Deep Value Investment Opportunity For Investors In 2013
Caiman Valores • 11 Comments
Caiman Valores • 11 Comments
Wed, Apr. 6, 3:39 PM
- Pacific Exploration & Production (OTCPK:PEGFF +3.4%) co-chairmen Serafino Iacono and Miguel de la Campa are close to clinching a deal to take over the company after outbidding rivals, Bloomberg reports.
- A bid by the co-chairmen is backed by Canadian P-E firm Catalyst Capital Group, which is expected to provide ~$500M in funds secured against the company’s assets, according to the report.
- Pacific failed to make bond interest payments in January and March, and has struggled after deals in recent years ballooned its debt before oil prices plunged.
- Now read Bloomberg: Pacifc E&P shareholders would lose all under chairmen's bid
Wed, Mar. 23, 10:26 AM
- Pacific Exploration & Production (OTCPK:PEGFF -10.3%) shareholders would lose their entire investment under a debt-for-equity proposal that an independent committee of directors is set to approve this week, Bloomberg reports.
- A bid from co-chairmen Serafino Iacono and Miguel de la Campa to salvage the company is now the front-runner after Mexico’s Alfa dropped a counteroffer on Friday, according to the report, which adds that a bid by Tyrus Capital still stands.
- Under the proposal, Pacific’s chairmen reportedly would receive 10% of the new equity in return for securing $400M-$500M in funding, with creditors set to gain ~40% of the equity; Canadian P-E firm Catalyst Capital is expected to provide the funds secured against the company’s assets, and would get the remaining 50% of the new equity.
Fri, Feb. 19, 11:26 AM
- Pacific Exploration & Production (OTCPK:PEGFF -7.5%) says it reached a forbearance agreement with certain noteholders, giving it more time to achieve a restructuring of its balance sheet.
- The deal follows the company's decision last month not to make scheduled interest payments due on the notes and to seek restructuring alternatives.
- The agreement is with holders of ~40% of its $4.1B in 5.375% senior notes due 2019 and of its 5.625% senior notes due 2025.
Fri, Jan. 15, 3:58 PM
- Pacific Exploration & Production (OTCPK:PEGFF -41%) plunges to a nine-year low after saying it would delay debt payments to conserve cash.
- Pacific says it will not make $66M in interest payments due this month on its bonds, choosing to use a 30-day grace period in order to "assess strategic alternatives with respect to its capital structure.”
- Earlier this week, EIG Global Energy Partners announced a tender offer for Pacific’s bonds as part of a plan to buy control of the company and restructure its operations.
Dec. 17, 2015, 2:18 PM
- Shares in Pacific Exploration & Production (OTCPK:PEGFF +51.4%) soared on speculation of a potential takeover bid or asset sales, before trading in Toronto was halted this morning with gains of 68%.
- Cantofr Fitzgerald's head of emerging market strategy tells Bloomberg that he does not know if there is a knight in shinning armor coming, but "it looks like someone knows something and the rest of us are in the dark.”
- Shares are still down by more than half over the past year as Colombia’s no. 2 oil producer struggles with debt and the imminent loss of its largest oil field.
- UPDATE: Shares pared gains, closing +13.7% after saying the lenders under its $1B revolving credit agreement are forming a steering committee to negotiate the terms of a potential extension of covenants.
Oct. 27, 2015, 11:57 AM
- Ecopetrol (EC -3.2%) says it will take over operation of the Rubiales field, Colombia’s largest, from Pacific Exploration & Production (OTCPK:PEGFF -8.5%) at the end of their contract in mid-2016.
- EC had said in March that Pacific’s contract for the field would not be extended, but Pacific said at the time that it could make a new proposal to keep running the prospect; the field provides Pacific with more than a third of its production.
- Pacific, which was previously named Pacific Rubiales, changed its name earlier this year to reflect a broader Latin America focus.
Sep. 18, 2015, 2:58 PM
- InterOil (IOC +2.1%) is a rare gainer on a day oil and gas companies suffer broad losses, after reporting an appraisal well drilled at its Triceratops gas discovery in Papua New Guinea delivered strong flow test results.
- IOC says the Triceratops-3 probe flowed at a rate of 17.1M cf/day of gas and 200 bbl/day of condensate, a result IOC says underscores the region's prospectivity.
- The well, a joint effort between IOC and partner Pacific Rubiales (OTCPK:PEGFF), is a potential tie-back candidate to the proposed Elk-Antelope project, in which IOC is a partner.
Jul. 15, 2015, 11:26 AM
- Pacific Rubiales Energy (OTCPK:PEGFF +5.1%) says it expects Q2 production of 151-153 Mboe/day, up ~2% Y/Y and in-line Q/Q, despite increased pipeline transportation disruptions through the quarter.
- The company sees Q2 sales volumes of 143-146 Mboe/day, down ~7% Y/Y, and expects Q2 underlying operating costs of $23-$26/boe.
- The gloom surrounding Rubiales after its would-be savior scrapped plans to buy the company may be overstated, according to analysts at Jefferies and Credit Agricole, since the company has bought itself time in recent months by pushing back maturities and cutting costs, giving it the ability to pay debt at least over the next few years.
Jul. 9, 2015, 12:58 PM
- Pacific Rubiales Energy (OTCPK:PEGFF -38.6%) plunges after Alfa and partner Harbour Energy dropped plans to acquire the company, forcing a drastic turnaround effort while saddled with $4.5B in debt and set to lose 35% of its oil production.
- "Pacific Rubiales has, in recent weeks, made it abundantly clear that, as an independent company, it will necessarily have to focus on cost-cutting, asset sales and debt reduction," says Dundee Securities analyst David Dudlyke as he cuts his target price to $3.
- An analyst at Paradigm Capital cuts his target price to $0.25, concerned that the company will struggle to survive without a new buyer.
Mar. 5, 2015, 12:24 PM
- Golar LNG (GLNG +10.8%) shoots higher on heavy volume after signing a preliminary agreement with Russia's Rosneft (OTC:RNFTF) to develop floating liquefied natural gas plants in Latin America and potentially elsewhere.
- GLNG says it aims to sign two agreements that would give Rosneft capacity from its floating gas liquefaction plants under development.
- The new concept of floating LNG production has yet to be tested, and the first such plant - owned by Pacific Rubiales (OTCPK:PEGFF) and whose output is earmarked for sale to Russia's Gazprom (OTCPK:OGZPY) - is expected to come on stream later this year.
Jan. 14, 2015, 3:49 PM
- Pacific Rubiales (OTCPK:PEGFF -11.3%) plunges amid concerns over lower oil prices, debt and a bond default at Colombia’s second-largest gold producer, Gran Colombia Gold.
- Three Pacific Rubiales directors serve on the boards of both companies, and Gran Colombia Gold says it missed the interest payment due Dec. 31 on its senior debt as well as on senior secured gold-linked notes.
Dec. 17, 2014, 3:44 PM
- Pacific Rubiales Energy (OTCPK:PEGFF +13.4%) agrees to sell 43% of its interest a Colombia pipeline and power transmission unit to the World Bank's International Financial Corp. and a group of investors for $320M.
- The agreements will provide PEGFF with $240M cash to be received by year-end, another $80M in Q1 2015, plus a commitment for an additional $60M to develop future infrastructure projects.
Dec. 4, 2014, 11:42 AM
- Pacific Rubiales Energy (OTCPK:PEGFF -16.1%) plunges after late yesterday's announcement of a 50-50 joint venture with Alfa, its biggest shareholder, which analysts say may delay the chances of a takeover.
- “Our preferred scenario would be that this passive investment evolved into an operational partnership, as it would represent an opportunity for Alfa to get access to heavy oil expertise," Credit Suisse writes.
- The JV will study bidding in the opening round of oil and gas blocks the Mexican government is expected to begin tendering early next year, and pursue other energy projects in the country.
- Pacific Rubiales also provides its 2015 outlook, saying it expects to raise output by 5%-8% next year, generating an estimated EBITDA of $1.9B-$2.1B.
Oct. 17, 2014, 10:42 AM
- Pacific Rubiales Energy (OTCPK:PEGFF +2.9%) signs a three-year agreement with Mexico's state-run Pemex to analyze oil and natural gas ventures, including potential deepwater and onshore heavy oil projects, as the country opens up its energy industries to private investment for the first time in decades.
- Pacific Rubiales has more than $1B ready to invest in Mexico with the aim of doubling oil output by 2020, CEO Ronald Pantin has said.
Feb. 12, 2014, 3:49 PM
- Shares of BPZ Resources (BPZ +3.4%) are strong after the company announced new production from its CX15-2D well offshore Peru.
- The block is producing a total of 5,425 bbl/day from the Corvina and neighboring Albacora fields, where BPZ is operator with a 51% stake and Pacific Rubiales (PEGFF) holds 49%.
- The well extends a "positive well streak" for BPZ, Global Hunter analysts say.
- Also, BPZ plans $86M in capital spending for 2014, $71M to be directed offshore.
Nov. 4, 2013, 10:25 AM
- Pacific Rubiales (PEGFF +4.5%) says it received environmental licenses for its planned exploration and development activities in two blocks in Colombia.
- CEO Ronald Pantin says the new permit on CPE-6 block is a “global environmental license" that green-lights both exploration and future development drilling.
- PEGFF operates CPE-6 on a 50/50 basis with Talisman Energy (TLM +0.2%); proven and probable reserves of 44.5M barrels on the block have been booked.
- PEGFF also gained environmental approvals for development of its wholly-owned Guama gas block in the Lower Magdalena Valley basin.
Pacific Rubiales is a public company listed on the Toronto and Colombian stock exchanges. The Company is the largest independent oil and gas exploration and production company in Colombia. Pacific Rubiales owns 100% of Pacific Stratus and Meta Petroleum Limited, two Colombian oil & gas operators... More
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