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Pegulas to buy energy business

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1 hour ago, MJS said:

Oh, you aren't a billionaire? I guess it doesn't make sense for a Joe Schmo to be criticizing a billionaire on his business and money making practices.

 

Oh, cool, fun game. I wanna play. 

 

I guess it doesn't make sense for a Joe Schmo to be criticizing an elite athlete or NFL head coach on their athletic prowess or decision making practices...

 

See what I did there. 

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18 minutes ago, Mango said:

Oh, cool, fun game. I wanna play. 

 

I guess it doesn't make sense for a Joe Schmo to be criticizing an elite athlete or NFL head coach on their athletic prowess or decision making practices...

 

See what I did there. 

 

You're probably right.  At least in terms of successful athletes or HC's.

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3 hours ago, 17islongenough said:

Well that sucks I had my eye on this business but was only going to buy for $250 million 

 

As they say, it takes money to make money!   🤷‍♂️

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1 hour ago, Mr. WEO said:

 

 

Fair point.  But if the owner of an energy company is not investing in new drilling, his confidence is low that prices are coming up.  If he had real confidence in the market, he would be expanding his own drilling capability, I would think, instead of taking on the debt of other companies in the same circumstances his is in. 

 

I would wonder, therefore, if this raising of funds to buy assets would not be seen by the SEC as a possible conflict of interest in that his solicitation of funds is to take over companies similar to his own struggling energy business.


why? It’s not going anywhere. Its value as a future sale in the ground with no extraction or storage cost is favorable in a soft market.  Drilling for the sake of drilling to extract and store it or sell into weakness is exactly how commodity markets do not work. In this market just like oil producers, you produce as little as you can to cover costs and keep margins thin as while weathering the storm.

 

Raising capital to make a play snatching up undervalued operations that are struggling at this price point, then consolidating costs and using scale to streamline is a pretty basic model in market weakness.  When demand returns, and prices rebound,  which they will, boom. It’s so undervalued right now even if it recovers partially he will win 2-3 times in likely 3 years or less. 

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Posted (edited)
2 hours ago, TheFunPolice said:

It's sort of what he did before...

 

Buy low, sell high. Say whatever you want about how they've run the Sabres (they seem to have gotten it right with the Bean and McDermott hires on the Bills) the guy knows how to make $$ in the energy industry. 

 

Sounds like a good plan! Just think, he could make more on this one deal than most of us COMBINED over our lifetimes!

 

I do not resent rich people. I’d even like to be one some day!    :)

Edited by Augie

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3 hours ago, 17islongenough said:

Well that sucks I had my eye on this business but was only going to buy for $250 million 

 

 

 

...MasterCard or VISA accepted..you should be fine, right?...........

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2 hours ago, RoyBatty is alive said:

 

 

That is EXACTLY what almost every energy "expert" said when prices collapsed after Thanksgiving 2014 and prices his all time lows this year.

 

Energy talk has gone form "peak oil supply" to "peak oil demand" in the past few years...some already think we may have already hit worldwide peak oil demand prior to Covid this year.


haha— true. 

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2 hours ago, Doc said:

 

Maybe Terry should consult with you, WEO.  Seeing all the money you've made in the industry...

 

You misunderstand (again).  I'm not asking why he's starting this venture---I'm asking why anyone would chose to put their energy investment dollars in this.

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3 hours ago, 17islongenough said:

Well that sucks I had my eye on this business but was only going to buy for $250 million 

hey big man, can I borrow a dollar? 

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29 minutes ago, Augie said:

 

As they say, it takes money to make money!   🤷‍♂️

 

 

"There's a sucker born every minute"

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1 minute ago, Mr. WEO said:

 

You misunderstand (again).  I'm not asking why he's starting this venture---I'm asking why anyone would chose to put their energy investment dollars in this.

Classic contrarian investment.

So this "poor" soul, Warrent Buffet, did he just spend $9 billion on a natural gas investment?

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30 minutes ago, Over 29 years of fanhood said:


why? It’s not going anywhere. Its value as a future sale in the ground with no extraction or storage cost is favorable in a soft market.  Drilling for the sake of drilling to extract and store it or sell into weakness is exactly how commodity markets do not work. In this market just like oil producers, you produce as little as you can to cover costs and keep margins thin as while weathering the storm.

 

Raising capital to make a play snatching up undervalued operations that are struggling at this price point, then consolidating costs and using scale to streamline is a pretty basic model in market weakness.  When demand returns, and prices rebound,  which they will, boom. It’s so undervalued right now even if it recovers partially he will win 2-3 times in likely 3 years or less. 

 

When demand was high, prices were falling.  

2 minutes ago, RoyBatty is alive said:

Classic contrarian investment.

So this "poor" soul, Warrent Buffet, did he just spend $9 billion on a natural gas investment?

 

 

He invested in a company that owns thousands of miles of pipeline and facilities for oil storage.  He's smart--buying up the infrastructure of the oil industry for after it's out of the ground.  He's not buying destitute drilling companies.  "18% of all gas/oil transmission" will be his.

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2 hours ago, boater said:

If Biden is elected with his stupid green deal policies for carbonless energy, NG will shoot through the roof in value.

 

Outlaw NG, then all the sudden NG becomes more valued (because their is no viable alternative).

 

No one in the next 4 years is outlawing NG.  Certainly not Biden.

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3 hours ago, WhoTom said:

When the pandemic is over, people start traveling, and businesses get back to full strength, the demand will increase and prices will go up again. In a year or two, he'll make a profit selling what he just bought.

 

Well, that's why Warren Buffett just spent $9.7 billion to buy Dominion Energy's natural gas storage and pipeline assets.

 

IMO, Terry's lost interest in being a pro sports owner and wants to go back to his one, true love.   He's very good at buying natural gas assets at a bottom and selling at the top.    It's probably much more fun than being a pro sports team owner...

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3 minutes ago, Lurker said:

 

Well, that's why Warren Buffett just spent $9.7 billion to buy Dominion Energy's natural gas storage and pipeline assets.

 

IMO, Terry's lost interest in being a pro sports owner and wants to go back to his one, true love.   He's very good at buying natural gas assets at a bottom and selling at the top.    It's probably much more fun than being a pro sports team owner...

 

 

Those are different assets than Pegula is offering.  See:

 

 

https://www.latimes.com/environment/newsletter/2020-07-09/boiling-point-warren-buffett-invests-billions-in-fossil-fuel-infrastructure-boiling-point

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22 minutes ago, Mr. WEO said:

 

When demand was high, prices were falling.  

 

 

He invested in a company that owns thousands of miles of pipeline and facilities for oil storage.  He's smart--buying up the infrastructure of the oil industry for after it's out of the ground.  He's not buying destitute drilling companies.  "18% of all gas/oil transmission" will be his.


I think you should short his SPAC after it IPOs. You will certainly win big 

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58 minutes ago, Mr. WEO said:

You misunderstand (again).  I'm not asking why he's starting this venture---I'm asking why anyone would chose to put their energy investment dollars in this.

 

No misunderstanding here.  You're questioning a guy who has made over $6B in the industry. 

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5 hours ago, Mr. WEO said:

 

 

Natural gas has been in steady decline since January 2019, when the economy was quite healthy.

Natural gas prices have been in a steadily decline since 2009 (height of fracking). While affected by the economy, as a trades commodity, it’s price is mostly determined by supply and demand. 
 

https://ieefa.org/ieefa-update-low-natural-gas-prices-a-negative-outlook-for-energy-sector/

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Posted (edited)
29 minutes ago, Doc said:

 

No misunderstanding here.  You're questioning a guy who has made over $6B in the industry. 

 

Yeah no kidding. I'm sure he has some inside tips too. People that rich at their craft dont make foolish major investments (for the most part). I'm sure Terry knows what hes doing. Man, people make him out to be this barely literate bafoon. It's pretty hilarious. 

 

Edit: or maybe I've just been reading too much Sabres' message board material for too long.

Edited by Bferra13

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24 minutes ago, Doc said:

 

No misunderstanding here.  You're questioning a guy who has made over $6B in the industry. 


No one doubts his smart play in the past—he wasn’t an investor he was the creator of a business.  Then he cashed out just in time, a great move.

 

Again...I am questioning why anyone would invest with a guy in distressed energy assets when he currently owns one that is struggling.   
 

Why doesn’t he just drop the  300 million himself if it’s such a smart play? Keep all the gravy for himself.

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