Org in strong position so no way its going to merge with sto imo.
It can only happen with the terms snd conditions dictated by origin because they are in strong position with no risk so even if that happens origin shareholders will be better off than sto..imo they simply wont merge.
20 cents unfranked div for this year and they wont revise dividend at low oil price so the dividend wont increase from 20 cents this year if oil wont rise..
There are more production cuts announced yesterday in hong kong.
It is a clear strategy from origin after hedging at about $6 bbl fir 82 million that they just going to seat calmly to withstand this low oil price turmoil.. Take over can only happen at premium price because origin will have 200m easily available for additional funding. They will have asset sale auction in march expected to generate 800m.
Only few opec countries in profit at current oil pruce of 27.5 bbl so this will be close to bottom. Wiodsude was keen for origin so if there is any offer to change me it would be around this levels..
However origin's strategy is more than clear they will do nothing and let the year go with current hedging with strong utility profits. I know its tough but i believe it is prudent strategy to do nothing like merger or anything.
Origin has always been hit hard with shorts so I always suspected the serious takeover play.
I reckon its very easy for origin to reduce aplng stake from 37.5% than merging with santos.
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