He pooh poohed Penn West but acknowledged its candidate. Then he said costs were too high. These are the companies that are the most profitable to take over. Deep reserves, and dominant player. Then he was trumpeting Crescent Point which is in the shi%%er and no one wants. When you look for take out candidates your looking for one thing, DEEP LONG LIFE RESERVES. LIGHT OIL IS PREFERABLE TO HEAVY OIL, and the high costs in the past, ( 3 times the norm according to Nuttall) means that the premium for the acquiring firm will be maximized once they cut costs, and then can reap that long lived cash flow stream for years to come.
It wont be Crescent Point it wil be Penn West because its not a dominant player in the oil sands but its dominant in light oil. I dont think it will be the Chinese either. I think it will be Shell, BP, XOM , or TOTAL. Thr chaos in the Middle East is awesome news too and will be a recurrent theme in 2013. its all about SAFE JURISDICTION.
i bet my right nut that Nuttall will be buying Penn West like crazy in the next few months and he will be " converted" soon. He likes ATH but they are oil sands and Harper basically said no oil sands will be taken over unless EXCEPTIONAL CIRCUMSTANCES. Oh also Nutall no one wants the headache of buying a tight oil or tight shale play. they want light oil , lots of it ,and easy to refine.