Dear Drilling Engineers (ok, hold on, I need one more day to talk about something else that is almost as important as you)

At EnerCom, I heard a few executives use the $CPE-$CRZO deal as evidence that “the market doesn’t like deals”. Incorrect. The market doesn’t like stupid deals (where there is no overlap and you acquire in another basin instead of being bought yourself). So. Let me present Exhibit 1: $PDCW-$SRCI.

What were they both to do? $NBL and $OXY weren’t buying. Extraction can’t raise capital and PE is rushing for the door. So quite literally, there is no one else that would want to merge and enter CO right now.

But, the combined company doesn’t add incremental DJ risk, has lower G&A and leverage and the “new PDC” is better able to work in the community as SB-181 makes its impact known. And logically- the market loved it! PDC up 17% thank you very much.

So. Case proven. Let this be a lesson… merge already! Your stock will go up (as acquirer or acquirees) and it will keep going up (read “not down”) until all the Shitcos declare chapter 11, rigs fall to 700 and energy companies stop subsidizing energy prices across the globe and oil sells at $65. $65 because that’s ACTUALLY the breakeven in America- the world’s marginal producer.