Q: Hi, comments on the acquisition by Tourmaline last night?
Are they getting one piece or two?
Are they getting one piece or two?
5i Research Answer:
At $292M, the acquisition (from Stratcona) is quite small for the company. They are also paying in shares. It also bought (bigger) assets from Saguaro Resources, adding 20,000 b/d in production and 369M barrels in reserve. TOU continues to relentlessly acquire assets in northeast BC and this continues to M&A trend there. While some financial details were not disclosed, tier one assets are scarce and we would consider these good transactions for the company.