(11-15-2013, 09:41 PM)jft310 Wrote:There is no deal in place nor a means to monetize the assets yet. Or those condensates are worth a lot more when the facility to monetize that asset is announced , built and functioning. Today they are in ground with a very low value. When the deals are announced , contracts signed to monetize those assets the analyst price targets will soar. Thats not the case today. Pavel is correct today.
I used to reject the kind of thinking that discounts present values at 15-20%/year AND a risk coefficient significantly less than 1.0 AND no recognition that energy costs are more likely to increase at a rate greater than inflation than not. Maybe not so much anymore, especially when that IRR is likely to show up in my account with IOC's virtually assured participation in an LNG facility with any deal. And then there's the condensates.