....Credit Suisse analyst Saul Kavonic told clients on Monday that “we see more to come’’ on the takeover front, “with all Perth Basin players potentially to be put in play’’.
“And Santos and Mitsui could wait in the wings to acquire the acquirers,’’ Mr Kavonic said. “Building four gas processing plants in the same basin was always ridiculous and sanity is prevailing with M&A to lead to a more efficient infrastructure solution.“
We consider it possible Perth Basin players such as Warrego, Strike, Beach, Talon and Norwest Energy may be consolidated in the next few years (and players such as Santos could wait and acquire the first round acquirers, such as Beach and Strike, in our view).’’....
......Credit Suisse said the WA gas market was getting more bullish and would be about 15 per cent undersupplied from next year following a recent Santos downgrade.
“This supports our bullish thesis that a WA gas market shake-up looms and WA gas prices could head higher than $8 per gigajoule, over double a couple years ago,’’ Credit Suisse said.....
TPD Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
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