BRMR will be controlled by Encap. which will do the same with them. eventually i see just a few huge companys in the shale space.
Right. If a company can make more money by consolidating then they will continue to consolidate. We see it more and more each and every day. You either buy someone in your backyard or you buy something in another basin. EnCap is in the business of making money and apparently Eclipse wasn't impressing their financial backer.
Penn Energy/Rex deal same thing. they may try a Penn Energy public offering or attempt a cash buyer. Eclipse stock stayed low after the Travis Peak deal and Encap could not get a return. the reality is financiers may have destroyed one of the industrys most technically innovative e&p companys from a boots on the ground perspective, over financial decisions. i saw it first hand when Riverstone Holdings thought they could run production from Wall St.our production was 500% higher when we made decisions based on field reality. they bankrupted their own investment.
i am expecting activity here to proceed as planned. the "team" will have all new players. the founder and senior managers indeed have been put to sleep and will not wear the team uniform any longer. i imagine a winning ball team giving up their uniforms to all new players with a ho-hum record then trying to convince us they can win. we'll need to play awhile to see.