'Palm' pid='7382' datel Wrote:I see over on Yazoo a discussion going on about concern of where IOC might ever come up with their share of the project money. The number $500 million is bring thrown about by bonk, and Eric even posted that they may have to do an offering again, and that it makes sense because last time pps was up like this they did an offering.
Now, someone there has thrown out and asked about how much they will get from the sell-down. Great question so far not responded to. Seems to me we have a few people in the know so let's see if we can solve this huge dilemma. So fill in the blanks and lets see what we can offer up as possibilities.
If IOC is required (they are) to sell a chunk of PRL 15, what might they fetch? Let's assume they sell Dumas requirement of 32.5%.
How much might they be able to borrow once a sell-down occurs? Didn't Collin state a while back how much they could borrow NOW to get their gearing ratio up to industry norms?
Other possible sources?
I bet we get this figured out. Anyone think we'll have to do an offering?
McDuck-San,
SInce the slayed arguments of bogus resource, crappy LNG macro, greedy management, political risk, project peril I am pleased now that the HSJ and the 'Burbot' are concerned where ennerOle will get $500 mill????
It just seems all is stacked against ennerOle, they ony have:
1) 60% ownership of a $22 Billion E/A field,
2) A free half billion+ CSP
3) Mitsui option for another $500 mill chunk of E/A
4) Known bidders of JKM/Shell and XOM (wild guess there!) buying 25% - 32.5% E/A
5) A PRE deal that tripled E/A bids and validated a T-2 with bigger and broader structure than E/A
6) More chunks of T-2 to sell-off
7) 5Mtpa production facilities and commitment for 8Mtpa, paid for by SHI/FLEX and EWC
A little debt should be no problem, I like debt when debt will be leveraged into multiples of fun-loving profit.
Better yet, I like the HSJ's fear that IOC has an offering at $95.
Even better yet, ennerOle logically has no reason to exist and we just be snapped up in a bid war and that $95/sh pps would come in handy in spiking offers.
I say let 'em worry about the $500 mill minutea, we can sit back and enjoy the big pic.