Milanos Milano
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Posts posted by Milanos Milano
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6 minutes ago, Jauronimo said:
What if the distressed companies sell all their valuable assets but keep their debt for reasons?
Im pretty sure they aren’t looking at debt laden companies, but.
“Generally, in an asset purchase, the purchasing company is not liable for the sellers debts, obligations and liabilities. But there are exceptions, such as when the buyer agrees to assume the debts, obligation or liabilities in exchange for a lower sales price, for example.”
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7 minutes ago, Mr. WEO said:
How much "free cash flow" is being generated by these distressed companies--especially at prices on a steady, years long decline? Unless they are only buying assets being sold in bankruptcy reorganization or outright liquidation, then they would be acquiring companies and their assets and their debt.
Again, I’m not sure what they plan on buying. But not to long ago, Diversified Oil and Gas purchased assets from HG Energy (private) that had operating wells. Pegs is looking for private businesses with these same kind of assets.
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16 minutes ago, Mr. WEO said:
They are only buying assets from companies that are in bankruptcy?
I don’t know who they are buying from. It doesn’t sound like they want a merger or taking on other companies stock and debt. They are looking for assets already generating free cash flow. They aren’t immediately looking for undeveloped acreage. It basically sounds like how Diversified Oil and Gas (DGAOF) operates. They may still develop undeveloped acreage at some point, but it appears they are targeting acreage with already producing wells.
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3 minutes ago, Mr. WEO said:
Maybe he will put some money into his own flagging fuel extraction company.
I didn't mean to suggest otherwise.
As for the $10, I was asking at the time that, since a share was cheap, was anyone backing their 'trust" in this venture's success with their own money.
If the assets looking to sell were generating enough cash flow to be profitable, would they be likely to sell? And wouldn't he be buying the company and its debt?
A lot of these companies have become bankrupt and they have to sell these kind of assets. Well hunting is common, kind of like Diversified Oil and Gas.
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1 minute ago, Jauronimo said:
These companies, just like Chesapeake Energy had massive amounts of debt. Pegs doesn’t over leverage his companies. He’s smart with his asset management. Initially he’s going for wells that are already in production that are generating free cash flow.
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Just now, Mr. WEO said:
He didn’t “buy low” before. He started an extraction company. He wasn’t an investor.But he has years of experience with all the economic phases of oil and gas. Why would he buy back in if he didn’t think he could provide ROI for his investors?
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18 minutes ago, Jauronimo said:
Par is $10. Its a special purpose acquisition company (SPAC). They formed a public company with the stated purpose of acquiring or merging with a company in the energy space. Pegs has 2 years to make a deal or return everyone's capital.
Every SPAC initially trades at $10 and there is little share price movement until deal is rumored or definitive agreement is in place.
Pegula made his billions buying oil and has producing acreage and developing this acreage. Raising capital, assessing investments, and closing deals is a different sport.
He’s very qualified in the oil and gas industry. It’s totally worth the risk to invest in Pegs. I think Terry has said they aren’t looking immediately at undeveloped acreage projects. They want cash flow from wells already in production. The problem is, I haven’t seen very many of those kind of assets for sale within PA. There looks to be some for sale just north of State College. It’s good he’s going after cash flow generating projects initially. I’d like for them to get established and maybe even offer a small dividend to their investors.
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1 hour ago, Mr. WEO said:
His last such decision was to cash out of NG and dump it all.
Ya, buy low sell high. Looks like he’s buying low again.
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I don’t think there will be a merger. Terry has already stated they want to acquire already productive wells in Pennsylvania, and not so much acreage projects. Wants to get that steady cash flow established. The questions is, what assets might he be looking at? Does Chesapeake energy still control any assets in the region?
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2 hours ago, haroldwaide said:
I honestly don't expect much movement for at least a year or more. Like I said, it's a long play but I'm think it will be well worth it in the end if you are able to stay in long enough.
It could be sooner, it all just depends on what Pegs does with the money. The sooner he acts the better, just hope he makes good decisions like his previous gas biz.
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Today closed at $10.00 . I wonder how long Pegs sits on the cash before he makes his move.
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2 hours ago, Over 29 years of fanhood said:
I just bought a stake in it. A bunch of cash in the hands of a self made billionaire who made his billions doing what he is about to do more of..... sure, why notHe’s very competent with a petroleum engineering degree from penn state. He has plenty of business experience as well. As long as NG prices rebound some, I wouldn’t be surprised to see him increased market cap 5-10x just likes he’s done before.
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Jersey Epidemic Terrible Season
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$10.0 a share now. Won’t do much until the business ramps up.
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11 minutes ago, Augie said:
If you think you made a clever point, I’d bet you’re in the minority. This isn’t worth it to me. Have a nice night.
Augie, I wouldn’t worry about it. He probably doesn’t even understand that Terry has a petroleum engineering degree from Penn St. or that members of his staff have engineering degrees with experience in the energy sector. They have all upstream, mid stream, and down stream experience. If there is anyone I trust in this industry, it’s Pegula.
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5 minutes ago, Shaw66 said:
It's very simple to me. Investing in someone with a good track record in the industry is a sound idea. It doesn't mean the investment will be a success, but it makes a whole lot more sense investing in someone who already has shown that he can make money in the industry.
Warren Buffett is the extreme example. He's shown he can succeed investing in a lot of different businesses, so people are willing to give him money to invest.
Buy low, sell high is a winning formula. Petrochemicals are low. They aren't going to zero permanently, not for a few hundred years. If I want to buy some petrochemicals low, I don't mind having Terry Pegula make the choices for me. He has a track record.
This. NG isn’t going anywhere for a long time. Renewables are great, but anyone thinking NG won’t be around doesn’t know anything about global energy. EVs have to run on electric, and NG will more than likely fill that demand. 100% solar isn’t happening anytime soon without massive battery storage which will need vast amounts of lithium. Not to mention NG as a heating fuel, it will be incredibly difficult to switch that in northern climates without paying way more in electricity costs. NG is also going to be needed for the growth of the developing world countries.
NG is also more than likely going to replace coal power plants.
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1 minute ago, Doc said:
Ok...what? You're saying that since no one else is expressing their concern...that they're not concerned about the viability of their entertainment businesses? That everything is hunky dory? I think everyone (else) can see the absurdity of that statement.
Doesn't matter. WEO knows more than a billionaire who made his fortune in this area.
A lot of other people apparently trust Pegula to. IPO closed in 3 days. I look forward to watching my investment grow. As long as Pegula is CEO and controls a large % of the outstanding shares, I feel like he can bring at least 2x growth.
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24 minutes ago, Mr. WEO said:
ok doc. lol
Name one energy venture Pegula has been in that has flopped.
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11 minutes ago, Mr. WEO said:
You mean you gave him your money in that IPO?
You don’t think he can take 300 million and increase the market capitalization of a company he is leading?
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1 minute ago, Mr. WEO said:
ok...
Dude knows how get that ROI. I trust him.
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5 hours ago, Mr. WEO said:
It's not just a physical asset buying company:
formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses in the energy industry in North America.
Either way, Terry controls a 1/3 of the shares and is CEO.
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Well the IPO closed. How long do you think until they start acquiring assets?
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Angry Orchard Park Stadium
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Tushy stadium is just lol. When the browns come to play, don’t forget to flush.
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Pegulas to buy energy business
in Off the Wall Archives
Posted · Edited by IronMaidenBills
I don’t think they are looking to buying a company outright. They are hunting assets.
Im not saying oil and gas as in production from a well. Of course they aren’t producing both, but it could mean he is looking at oil and gas. Chances are he will focus on gas.