12-12-2013, 07:34 PM
Thanks JFT for the endorsement
Anadarko's P/E Ratio is 23+
In terms of discounting the sale price, most projects are discounted based on the Owner's "Weight Average Cost of Capital" which is roughly 9% these days.
Also, in a few years IOC should have far more gas resources identified from the other pearls in the string.
HOWEVER, I believe there's a measurable chance that IOC will be bought out sooner rather than later ... certainly when the delineation wells are evaluated and maybe before the deal with Total even closes.
Most people in the industry realize that the PPS fall as a result of this stinker of a deal with Total doesn't accurately value IOC and the opening bid will be substantially higher than $150 per share. Gaffney Cline & Associates people who I know told me, based on the drilling information they've seen that's in the public domain, that there is most likely more than 10 TCF gas in E/A . It's been said that GCA's semi-public report said 2-3 more wells will enable them to recertify at the figures already estimated by GLJ.
TIME WILL TELL
Anadarko's P/E Ratio is 23+
In terms of discounting the sale price, most projects are discounted based on the Owner's "Weight Average Cost of Capital" which is roughly 9% these days.
Also, in a few years IOC should have far more gas resources identified from the other pearls in the string.
HOWEVER, I believe there's a measurable chance that IOC will be bought out sooner rather than later ... certainly when the delineation wells are evaluated and maybe before the deal with Total even closes.
Most people in the industry realize that the PPS fall as a result of this stinker of a deal with Total doesn't accurately value IOC and the opening bid will be substantially higher than $150 per share. Gaffney Cline & Associates people who I know told me, based on the drilling information they've seen that's in the public domain, that there is most likely more than 10 TCF gas in E/A . It's been said that GCA's semi-public report said 2-3 more wells will enable them to recertify at the figures already estimated by GLJ.
TIME WILL TELL
Drivel Maven with Personality