01-26-2013, 04:30 AM
With what IOC has found and likely will find, there is no good reason for them to exist.
The dynamic is not a multiple of an absurd undervaluing share price but what that gas is worth based on PNG LNGs gas cost. A negative cost gas WILL be worth much to all SMs, NOCs and JKM which are bidding. If they can buy IOC out for less than $5/Mcf it is a steal compared to PNG LNG's costs.
This is why IOC will not be sold cheap. If bidders approach $3.5-4/M, that is when fair value is approached.
The dynamic is not a multiple of an absurd undervaluing share price but what that gas is worth based on PNG LNGs gas cost. A negative cost gas WILL be worth much to all SMs, NOCs and JKM which are bidding. If they can buy IOC out for less than $5/Mcf it is a steal compared to PNG LNG's costs.
This is why IOC will not be sold cheap. If bidders approach $3.5-4/M, that is when fair value is approached.