Origin & santos

[kiwiwim]

Reading the story about a possible merger of Origin & SANTOS. Which company to invest in to have the best cap gain prospect.? And what potential effect could this have on other Gladstone operators?



http://www.businessspectator.com.au/bs.nsf/Article/BREAKFAST-DEALS-Iron-of-the-steppes-pd20090721-U5TQL?opendocument&src=rss

[OldRider]

Believe it or not, I was unable to find an ORG thread, I wonder why with its history?

I have just entered some newly purchased ORG shares (from rights issue) into the portfolio and thought the fundamentals striking

First purchase 20 Feb 2001 with six further buys no sells.
The following figures use NZ$ as base currency so are affected by $AU/NZ changes in cross rate

IRR 25.24%
Dividend paid every year average div return 2.12%, dividend return on cost now 9%
Dividend per share annual growth 15% average
Portfolio value recorded on 31 March each year, other than the first year when the price dropped just after purchase return has been
positive every year, best year 77.97% lowest 4.94$ omitting first two month period.
Equity growth 7% yearly average
Return on retained and additional capital over 20% annual average.

I could add more, but I think this is enough. Do a comparison with Contact.

[mark100]

A bit of discussion here

http://www.sharetrader.co.nz/showthread.php?5924-ORG-Takeover-Bid&highlight=org

[babymonster]

Anyone follow these two stocks?

[Joshuatree]

Thinking about ORG atm as a possible buy.

[JBmurc]

I'm still holding off on the O&G sector think we will see much more negative sentiment to come next couple qtrs ...But will be keen to BUY before the years out ..HZN top of my list ...

[macduffy]

Origin Energy has detailed plans for a demerger of its conventional upstream energy business, a move that will leave it to focus on its energy retail operations and integrated gas unit that includes its Australia Pacific LNG project in Queensland.


" The conventional upstream business that serves as the focus of the IPO supplies both the Australian and New Zealand domestic markets and will include interests in the Otway Gas Project, BassGas Project, Kupe Gas Project and the Perth, Cooper, Bonaparte and Canterbury basins.

Origin said the spin-off, which it was today referring to as NewCo, would be a mid-cap energy exploration and production company on the ASX, while the move is seen boosting its earnings from fiscal 2019 onwards. It is not intending to hold a stake in the demerged vehicle post-listing.

The new company will enter into contracts with Origin prior to listing that will see the latter receive access to existing resources and rights to undeveloped resources.

Chairman Gordon Cairns added the company's focus on core assets meant the conventional upstream business would not receive the injection of capital required to fully realise its potential without going its own way.

"The divestment of Origin's conventional upstream business will allow the company to focus on its energy markets business and the simplified integrated gas business," he said. "Given Origin's ability to invest capital in the NewCo assets is constrained, their long term value will be better supported by them being an independent business."