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Saturday, June 14, 2014

Repsol seeks purchases with 7-8 percent return rates, (AMEX: EGAS)

Spanish oil company Repsol is looking for acquisitions in OECD countries that offer an internal rate of return of between 7 percent and 8 percent, Chief Financial Officer Miguel Martinez told El Economista. Repsol has already said it could spend around $10 billion on acquisitions to boost its exploration and production business and Martinez said Norway, Canada and the United States are its first countries of choice."The kind of country that lets you sleep one night a week," Martinez said in an interview with El Economista published on Saturday.Repsol would be looking for an internal rate of return, a measure of profitability, of about 7 percent from projects in Canada and 8 percent in the United States and Norway, he said, and reiterated the search for purchases that offer a growth platform and fresh know-how.The firm has a war chest of about $5 billion after settling with Argentina over the 2012 seizure of its YPF arm and has said it could also sell its 30 percent stake of Gas Natural Fenosa, worth about $9 billion, to fund a buy.

Gas Natural Inc., is a natural gas company, primarily operating local distribution companies in six states and serving approximately 70,000 customers. Shares of EGAS traded higher by 0.58% or $0.06/share to $10.38. In the past year, the shares have traded as low as $7.49 and as high as $11.35. On average, 85203 shares of EGAS exchange hands on a given day and today's volume is recorded at 29046.