Anglo as it sits pre merger is really only worth $4 million. With approx 200 million shares out, that is 2 cents/share pre merger or 29 cents/share post consolidation. The $4 million Anglo value coupled with the $26 million value that Tallgrass is bringing to the table puts the total post merger value of New Tallgrass at approx $30 million. Net of the $17 million debt that puts the share price at approx 55 cents based on 23.5 million shaares. Then when the 2 new Q1 drills are added in at a value of approx $3 million each, that adds another 25 cents/share. So the total value right out of the gate is approx 80 cents/share.

So to reiterate, Anglo really is only worth 2 cents/share or 29 cents/share after consolidated. But because of the screwd deals that Tallgrass has done and the value they bring to the table, Anglo shareholders should see an immediate increase in share price from 29 to 80 cents/share. All the value in New Tallgrass really is in what Tallgrass brings to the merger. Anglo is bringing very little value to the party.

The real question one must ask is "What does Tallgrass see in Anglo?". They must see something attractive in the large land base. If so, that will add significantly to the share price in addition to the post merger 80 cent value. As I have said before on this post, I can see this stock going to at least $1.50/share in the near term and who knows how far in two or three years. The Tallgrass management team are experienced and motivated. These guys may not be well know to investors but they know what they are doing. They have already quadrupled the initial value of Tallgrass in less than 3 years in a very tough financial environment. If they can do that again in 3 years that puts the share price at $3.20/share. That is huge. Hang on to your hats boys, this one has legs.