Q: I understand that Parex is in the middle of a strategic review, I just don't understand (a) why a sale of the company makes sense, and (b) why the stock price continues to fade. Doesn't Parex have one of the better business cases out there? Cash, Brent pricing, new wells - what's not to like?
Some months ago, on BNN, Dennis de Silva suggested that their assets are entering a declining phase - which would certainly make a prospective buyer think twice. But aren't most (all?) O&G companies constrained by the wasting-assets problem? Yet we continue to invest in them.
Some months ago, on BNN, Dennis de Silva suggested that their assets are entering a declining phase - which would certainly make a prospective buyer think twice. But aren't most (all?) O&G companies constrained by the wasting-assets problem? Yet we continue to invest in them.