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Tuesday, May 8, 2012

Petrobank/Petrobakken Buybacks

Am I the only person buying Petrobank these days?  The stock price makes it seem that way.  But it isn't quite true, because Petrobank is buying Petrobank.  And now Petrobakken (the subsidiary) is using some of that $900 million per year of cash flow and $1 billion of liquidity to buy back some Petrobakken shares as well.

First the simple part, the Petrobank buyback from yesterday:


Toronto Stock Exchange

Company Name : Petrobank Energy And Resources Ltd.Last Updated: May 7, 2012
DateSymbolInsider
Buys
Volume
Insider
Sells
Volume
Insider
Buys
Value $
Insider
Sells
Value $
Insider
Buys
Transaction
Insider
Sells
Transaction
Currency
05/07/2012PBG19,3000242,162.000.00750CAD


Of course Petrobank is using a very inefficient Mr. Market to fund this repurchase as Petrobank is selling Petrobakken shares and using the proceeds to buy back Petrobank.

But a look at the Petrobakken insider details shows not only the Petrobank sales of Petrobakken, but also that Petrobakken continues to buy back shares at a healthy clip:


Toronto Stock Exchange

Company Name : PetroBakken Energy Ltd.Last Updated: May 7, 2012
DateSymbolInsider
Buys
Volume
Insider
Sells
Volume
Insider
Buys
Value $
Insider
Sells
Value $
Insider
Buys
Transaction
Insider
Sells
Transaction
Currency
05/07/2012PBN40,80011,400526,449.50146,676.008374CAD

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