Forest Oil Corp (NYSE:FST)
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An independent oil and gas company engaged in the acquisition, exploration, development, and production of natural gas and liquids primarily in North America.
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An independent oil and gas company engaged in the acquisition, exploration, development, and production of natural gas and liquids primarily in North America.
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Forest Oil Corp (FST) just completed the sale of the remaining equity holding in their spin-off 70,000,000 shares of Lone Pine Resources (LPR). As part of this spin-off Forest Oil was able to unload $2B in debt on to the newly formed LPR, as well as raising $178M in cash in the IPO that it held in Q2 of this year. The company split into two with the Canadian Assets being taken over by LPR and the US assets being retained by FST.
After this split I think that FST is in the better place, as it has reduced its debt in the process and increased its cash position. FST will no doubt take advantage of this position to expand its US operations and develop its current oil finds further. I expect this to effect revenues in 2012 and 2013 significantly, which I don't think are fully priced into the stock.
Good buy anywhere below $10/share.