12-12-2013, 02:20 AM
Yes, against the negatives:
- Time (no Exxon, so longer wait for LNG plant)
- Somewhat disappointing deal metrics (in the first poll, I entered the option between $1-1.5/mcf)
- Some fudge about the size of the resource (although I think much of that is manufactured)
Stand the positives:
- Much of the economic and political uncertainty removed, the stock should be derisked to a considerable extent
- IOC has a clear path to monetization
- Cash shortage removed for a loooong time
- MUCH accelerated exploration in an area with many promising prospects
- Much bigger stake in LNG plant than we would likely have gotten in the Exxon plant.
Is this worth the epic sell-off? Dunno, don't think so. Asset prices have a habit of overshooting, and then undershooting..
- Time (no Exxon, so longer wait for LNG plant)
- Somewhat disappointing deal metrics (in the first poll, I entered the option between $1-1.5/mcf)
- Some fudge about the size of the resource (although I think much of that is manufactured)
Stand the positives:
- Much of the economic and political uncertainty removed, the stock should be derisked to a considerable extent
- IOC has a clear path to monetization
- Cash shortage removed for a loooong time
- MUCH accelerated exploration in an area with many promising prospects
- Much bigger stake in LNG plant than we would likely have gotten in the Exxon plant.
Is this worth the epic sell-off? Dunno, don't think so. Asset prices have a habit of overshooting, and then undershooting..