| Razor Energy (RZE-V) takeout target Canaccord Genuity analyst Sam Roach. His more optimistic musings was that Razor could attract a takeover bid of anywhere from $3 to $7 a share. An acquirer would be a fan of Razor's "strong capital efficiency," "light oil torque" and "low-hanging fruit for development," as Mr. Roach put it. He pointed out that Razor was created just a year ago, in late 2016, and is already producing about 4,000 barrels of oil equivalent a day. Roughly 3,000 of that production came from asset acquisitions in December and April. Razor has spent much of its time since then reactivating old wells to bring them on production, as opposed to drilling new wells. Mr. Roach expects this trend to continue in 2018, a year in which he reckons that Razor will produce an average of 4,800 barrels a day, for a 20-per-cent increase from the current level without any drilling. Despite all of this "low-hanging fruit," Mr. Roach expects Razor's "biggest driver of growth going forward" to be additional acquisitions. He did not give many predictions about those, focusing instead on who might eventually acquire Razor. |
