TSV/TMK entry point, page-93

I'm more interested in discussing what Canbriam Energy was sold for.








Those are some of the highlights ... all there in their May 2019 Investor Presentation

Being private, there is no publicly available financial statements (that I can find) .... just little bit of history in news
2008: $300M Equity (Warburg Pincus & ARC Financia)
2012: $150M Equity (Ontario Teachers) .... at this point in time they had ~62,000 net acres
2014: $250M Debt Offering (DUE 2019)
2015: $101M Debt Offering (DUE 2019 added to prior issue)
2016: Achieves 30,000 boepd (Mar)
2017: Capital budget for 2017 of $295M, multi-phased development (inc infrastructure) designed to achieve ~60,000boepd late 2018
2017: $100M Equity (WP, ARC & OT)
2018: Acquired by PO&G for all cash transaction

So in aggregate ~$550M Equity & $351M Debt (due in 2019 ... not certain of this but maturity date might be Nov 14).

Very roughly, looks like they have developed about 38% of acreage (Total Developed Locations (103) / Total Locations (274) = 38%). Therefore developed acres = 64,445 and undeveloped acres = 106,991

Using the Cormack model, $20,000/boepd = $20,000 x 36,953 = $739M
PDP NPV10 = $552M
I guess that's the range for the "value" of present production (midpoint of $645M)
Big unknown is the value of the field infrastructure and those gas plants (capable of 330MMcfpd). Replacement value $330m

"Our operational strategy is characterized by our ownership and control of our field infrastructure, which lowers op costs and reduces our reliance on third parties." This is an important investment that's made when developing an asset - context for CE1.

So I'm estimating "value" of $975M + whatever undeveloped acres are worth ... say $2,500 if you like ... ~$266M

Expecting a price tag around $1,241M in a normal market perhaps. If so that's $890M to Equity holders and $351 to Debt holders. That''s not a return to the equity holders that should be considered as risk-adjusted reward ... too low IMO.

Love to know the $$$ for the deal.